Is the job market really that bad?

[SaltyDog]

I question, however, whether some of these contractors would stand up to IRS scrutiny

"IRS scrutiny?" What's that? Is that like FCC scrutiny?

Worse. The I.R.S. has certain conditions that must be met before you can pay someone as a contractor bypassing withholding and other employer responsibilities.

See: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-(Self-Employed)-or-Employee%3F

 

[TheBigA]

Could it be that the government is breaking its own laws in its use of ICs in various agencies?

 

[SaltyDog]

Could it be that the government is breaking its own laws in its use of ICs in various agencies?

It wouldn't shock me but it would be of no consolation or consequence to point that out if the I.R.S. were to rule against a private company in an audit.

 

[TheBigA]

It wouldn't shock me but it would be of no consolation or consequence to point that out if the I.R.S. were to rule against a private company in an audit.

Ahhh, an audit. The reason I compared the IRS to the FCC is that both agencies have been hurt by budget cuts. The IRS has conducted far fewer audits since the Bush administration because the staff that used to do those audits has been cut.

 

[Goat Rodeo Cowboy]

Worse. The I.R.S. has certain conditions that must be met before you can pay someone as a contractor bypassing withholding and other employer responsibilities.

See: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-(Self-Employed)-or-Employee%3F

I opened up the link and did a very quick, very casual look. There is one issue that I did not see. Back (circa the 1980s) in the somewhat rowdy days of computer programming, there was a lot of setting up computer programmers and contractors. It became such a problem that a special rule was put in place that pretty well treated computer programmers as though they were some other species. Tax law/rules/regulations DEMANDED that any computer programmer who wanted to work as a contractor either had to work for a corporation (a temp agency) or set up their very own one-person corporation.

The radio industry is probably not big enough to employ enough "private contractors" to match what was going on in the computer programming world in that era but if I were a serious single-person radio contractor, or if I were running a chain of stations and making use of a lot of contractors, I would have my accounting firm and legal counsel look at that whole scenario for hints of possible problems.

Now. Putting on one of the hats I have worn in my previous life, let me look at this conversation through the eyes of a Corporate Risk Manager (Insurance program Administrator). What does insurance custom and law have to contribute to this conversationd? If I am producing commercials for a radio station and I reach around behind my computer to unplug the power to my printer so I can plug in my mic preamp and I am electrocuted- - - what happens when my widow meets with the attorneys? If I am an employee, Workers Comp will spell out what financial liability, if any, my employer has to compensate her. She cannot sue them above and beyond that. However, IF I am a contractor and the lawyers can make a case that the radio station gave me hints on how to set up my recording/production set up, as a non-employee my wife is free to file all kinds of liability claims and law suits. Doesn't mean she can win... but it will cost someone a lot of legal fees to prove they don't owe her anything.

There are days when life get's very, very messy. Now excuse me while I unplug my printer and ..... ZAP!!!!!

 

[RadioFan2J3]

Could it be that the government is breaking its own laws in its use of ICs in various agencies?

Probably not. In most cases, the USG was contracting out certain services to companies and the employees of those companies were performing the services to the USG. The contracts usually specified the hours the compnay was to supply manpower and what job functions they were to perform, but technically the contract employees werenot supervised by USG employees.

 

[SaltyDog]

Could it be that the government is breaking its own laws in its use of ICs in various agencies?

Probably not. In most cases, the USG was contracting out certain services to companies and the employees of those companies were performing the services to the USG. The contracts usually specified the hours the compnay was to supply manpower and what job functions they were to perform, but technically the contract employees werenot supervised by USG employees.

That might not get them off the hook. In 2005, Walmart settled a suit filed against it for hiring illegal aliens to clean its stores. Its defense was that it didn't employ them directly, but that they were hired by contractors.

Wal-Mart has said that its executives knew nothing about the employment of illegal immigrants before the raids and that the janitors were hired by contractors that Wal-Mart used to clean its stores late at night. Company officials said they used more than 100 contractors to clean more than 700 of its stores.

"We acknowledge that we should have had better safeguards in place to ensure that our contractors were hiring only legal workers," said Mona Williams, a Wal-Mart spokeswoman.

Walmart ended up paying $11 million dollars.

Source link: http://www.nytimes.com/2005/03/19/business/19walmart.html

 

[TheBigA]

Of course, that suit was from INS, not IRS.

 

[RadioFan2J3]

Could it be that the government is breaking its own laws in its use of ICs in various agencies?

Probably not. In most cases, the USG was contracting out certain services to companies and the employees of those companies were performing the services to the USG. The contracts usually specified the hours the compnay was to supply manpower and what job functions they were to perform, but technically the contract employees werenot supervised by USG employees.

That might not get them off the hook. In 2005, Walmart settled a suit filed against it for hiring illegal aliens to clean its stores. Its defense was that it didn't employ them directly, but that they were hired by contractors.

Wal-Mart has said that its executives knew nothing about the employment of illegal immigrants before the raids and that the janitors were hired by contractors that Wal-Mart used to clean its stores late at night. Company officials said they used more than 100 contractors to clean more than 700 of its stores.

"We acknowledge that we should have had better safeguards in place to ensure that our contractors were hiring only legal workers," said Mona Williams, a Wal-Mart spokeswoman.

Walmart ended up paying $11 million dollars.

Source link: http://www.nytimes.com/2005/03/19/business/19walmart.html

That's all well and true. On the other hand, depending on the services provided to the US government, contracting companies may have to require their employees to undergo security checks before they are given credentials allowing them into the facilities.

My guess is that all Wal-Mart wanted to see was that the contractor supplied enough warm bodies to do the work.

 

[secondchoice]

FedEX Ground is almost all private contractors. They boss and direct these folks like they were employees but FedEx does not have to provide benefits. These guys even have to buy their own uniforms just for a "job" that barely pays min. wage in some parts of the country. FedEX is going to the Supreme Court to keep it that way.

http://erisafile.com/blog/2012/07/1...ts-wait-for-answer-from-kansas-supreme-court/

If the Health Care reforms stays in tact, I guess the "independent contractors" will be on the hook for health care insurance instead of going to the emergency room with no ID just a fake name and get "free" treatment. Don't laugh, this kind of heath care has worked for folks that do not qualify for medicaid for years.

 

[joshzz]

Producer Guy, in what general market are you located?

Stations prefer to hire local because there are many instances in which a new employee is just not a good fit. The new guy/gal can be the most talented person in the world but if the "sensitive & delicate" morning host doesn't like him/her, it's probably not going to work out.

 

[TheBigA]

Stations prefer to hire local because there are many instances in which a new employee is just not a good fit.

Plus no one wants to pay moving expenses.