1099s vs. W-2s: Your worker classification questions answered

Available now (on demand)

Misclassifying workers can cost you. Not only are there substantial financial penalties, there can be severe criminal penalties as well, including felony classification in some states. But how do you know whether your workers are properly classified?

Employees vs. contractors has been in the news a lot recently, as state rules change and enforcement increases. It's been complicated by recent gig economy legislation, most notably with California’s AB5 law. Other states are following suit, and it can be hard to keep up.

Watch this video with Utah tax attorney Ephraim Olson and HR expert Sidney Bruce, as they give you a clear understanding of IRS and DOL rules and help you determine how best to classify your workers. They cover:

  • How the IRS determines whether a worker is an employees or contractor
  • Potential IRS fines for misclassification
  • Department of Labor test, as well as state tests
  • Potential DOL and state penalties
  • Federal and State court cases showing how courts decide
  • How to do an ABC test to determine independent contractors
  • What to do if you’ve incorrectly qualified an employee
  • And more

About the hosts: 

Ephraim Olson is a tax attorney and entrepreneur who focuses on helping small businesses resolve their tax concerns. Ephraim graduated from Harvard Law School with his Juris Doctorate and has been practicing tax law since graduation. Ephraim worked at a family tax boutique firm for several years working on cross-border tax issues. He founded his own firm in the beginning of 2020, which has now become a partnership, Olson Harnish Law. The firm was founded to focus on resolving domestic tax issues. Ephraim specializes in Federal corporate and partnership tax, as well as state and local taxes, including issues such as employee/contractor taxes.

Sidney Bruce is an entrepreneur and female minority business owner who loves connecting people from all walks of life to achieve greatness together. As the founder of ModHR, Sidney is a trusted partner within the fractional HR space who has built a reputation for tackling challenges with disruptive and innovative solutions. With transparency, diligence, and commitment, ModHR has helped dozens of companies take their HR departments to a new level of efficiency and empowerment. Prior to launching her own business, Sidney spent a decade building a successful career in corporate America, serving as the human resource director for CW Group, and as a Director of Financial Aid at Taylor Andrews Academy