Retirement Plan Legal Specialist Pentegra
|
Bates & Company
|
Central Pension Fund of the IUOE
|
Defined Benefit Calculation Specialist/Actuary The Angell Pension Group, Inc.
|
Central Pension Fund of the IUOE
|
Trucker Huss, A Professional Corporation
|
Carpenter Morse Group
|
Retirement, LLC
|
Jr Retirement Plan Administrator/ Administrative Assistant Hochheiser Deutsch & Co, Inc.
|
Compass Retirement Consulting Group, Inc.
|
Prime Pensions, Inc.
|
Retirement Plan Relationship Manager ERISA Services, Inc.
|
Nova 401(k) Associates
|
Nicholas Pension Consultants
|
United 401(k) Plans, Inc.
|
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
|
|
Question 10: Why are the rules different as to the definitions of when a worker is an independent contractor as opossed to a common law employee for IRS rules dealing with social security and payroll tax coverage as compared to rules used by the Department of Labor Wage and Hour Divisions for purposes of when a worker is subject to the overtime requirements and minimum wage requirements? Why don't they use the same definitions for consistent treatment by the federal agencies when dealing with an employer's compliance in this area. Example: IRS says workers are independent contractors thus not subject to payroll tax withholding or employer matching but DOL says they are employees for their purposes thus subject to overtime and minimum wage requirements. Why the inconsistency when they both are looking at the same fact pattern involving the workers? |
Answer: An outstanding question, and one better posed to Congress and to the various regulatory agencies.
|
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
Related links: |