Issue link: https://www.e-digitaleditions.com/i/620205
18 STORM & SECURITY PROTECTION / PEOPLE IN THE KNOW 2015 sectors. The expansion of contingent work has contributed to the increasing gap between high and low wage workers and to the increasing sense of insecurity among workers." • "Unfortunately, current tax, labor and employment law gives employers and employees incentives to create contingent relationships not for the sake of flexibility or efficiency but in order to evade their legal obligations. The employer will not have to make contributions to Social Security, unemployment insurance, workers' compensation and health insurance; will save the administrative expense of withholding; and will be relieved of responsibility to the worker under labor and employment laws." • "The definition of employee in labor, employment and tax law should be modernized, simplified, and standardized; instead of the control test borrowed from the old common law of master and servant, the definition should be based on the economic realities underlying the relationship between the worker and the party benefiting from the worker's services." Collateral Support The Internal Revenue Service (IRS) has sided with the Department of Labor and has signed an operating agreement with the DOL to share information to better discern when a contingent employee is actually your employee. They are looking to push independent con- tractors back to employee status so that the employers would be required to collect and remit payroll taxes. One government survey estimated that 38 percent of subcontractors in the construction industry were really Common Law employees and should be subject to income, Social Security and Medicare taxation. If more independent contractors became employees, state unemployment funds would gain an immediate increase in revenue, and the corresponding reduction of exempt workers under the workers compensation statute would contribute to a reduction in the rates per hundred on workers compensation codes tied to construction. Why Getting It Wrong Matters The importance of accurately understanding who your employee is and how the employment of the 4 Meets AstM, FloridA And texAs codes 4 secure, econoMicAl, Goes uP FAst ! 4 AttAches Plywood shutters to Any size or shAPe window, door 4 works on stucco, Brick, Block, wood And MetAl 4 All steel, Powder coAted, MAde in usA HANG IT, Lock IT, DONE! THE one-minute, do-it-yourself storm shutter system (843) 273-0048 www.ShutterUpLatches.com Florida Building Commission Approved FPA #15640 Approved Texas Department of Insurance, Meets ASTM Hurricane Standards Kits Starting at $39.99 / Contractor Discounts Do It Once, Do It Right HANG IT Lock IT DONE!