Aimpoint Pension
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United Benefit Pensions Inc.
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NFL Player Benefit Office
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Retirement, LLC
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Junior Implementation Specialist - 401(k) Administration Ubiquity Retirement + Savings
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Site Manager / Senior Administrator Nicholas Pension Consultants
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Hessel & Associates, LLC
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Sr. Retirement Plan Administrator Tycor Benefit Administrators, Inc.
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Compliance Analyst - 401(k) Administration Ubiquity Retirement + Savings
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Defined Benefit Plan Consultant Sentinel Benefits & Financial Group
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Retirement, LLC
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Manager - Defined Contribution Plans M2B Retirement Consulting LLC
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MGKS
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Nicholas Pension Consultants
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Sentinel Benefits & Financial Group
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Question 13: I know the IRS recently issued some audit guidelines about independent contractors. What are they and what affect do they have? |
Answer: The IRS has had its institutional hands tied for years. Congress has forbidden them from writing new regulations dealing with the classification of workers as independent contractors or employees. Meanwhile, their existing Revenue Rulings, like Rev. Rul 87-21 which lays out the "20 factor test," are slipping out of date. Court rulings have recognized factors not included in the 20 factor test (such as the intent of the parties, and the skill of the worker). Business conditions have changed so that some factors are not as relevant as they once were (e.g., with telecommuting a popular option, being able to set your own hours or working at home is not as clear a sign of independent contractor status as it once was). |
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.
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