Temporary Employment?

Question

I heard they were going to crack down on these kinds of employers who use temp workers for a long period of time. Is this true?

Answer 1

The IRS is cracking down on employers who use "consultants" as employees.

There are many tax benefits available to legitimate Independent contractors/ consultants, from deducting the office in your home to costs associated with an automobile. Most importantly, Consultants are responsible for medical and pension benefits, a big cost to employers, as well as the 100% of Social Security Taxes, (employer pays 50% of the tax; employees pay the other 50%). So employers use ex-employees as "independent contractors" to retain the benefit of the knowledge and skill of the individual as well as providing an "adder" to the compensation in the form of a fee.

It is estimated that the Government is losing more than $10 Billion per year in tax revenue, so "Uncle Sam" has begun to scrutinize the tax returns of the "consultants" (receiving Form 1099) or other people who have "outside income" (cash) to determine of they comply with the IRS Regulations which set forth the common law requirements controlling the employer/ "consultant" relationship.

Legitimate temporary employment agencies, and temporary positions with employers who treat the worker as an employee should not be affected.

Answer 2

I worked for a temp company in Connecticut, I were given positions for human beings lower than and over 18, there have been applicants that I refused to get employment for in preserving with their previous employment historic previous.