Robin's Ruminations

Two friends sent me links to the same article today.  Here's the link:  http://www.nytimes.com/2010/02/18/business/18workers.html?em

Of particular interest in the article is mention that the rules regarding the use of IC's are changing.  After 30 years or more the IRS rules are being rewritten.  What they're going to say is anyone's guess at this point but I think it is reasonable to assume they will make it harder to qualify your workers as IC's.  And I wouldn't be at all surprised to see state rules (the six part test) adjusted similarly.

A good many WSPSA members utilize the services of IC's.  State employees with L&I and Employment Security have stated (on multiple occasions) they don't think process servers qualify under the existing six part test and a series of audits appears to be under way.  Who knows what things will look like if the rules are tightened even further.

I think WSPSA understands its obligation to offer assistance, under certain circumstances, to its members who are under audit.  I also believe WSPSA will be involved in fighting unreasonable changes to the six part test.  But if the Federal government is involved, well that changes things.  WSPSA's "war chest" is very small.  Perhaps NAPPS will become involved at that level.

If you are using IC's at this time you need to understand the current rules and you need to understand them very well.  You need to make certain you've got your house in order - if you don't you will fail an audit and the results could cost you dearly.

By the way, just to be clear, I am not attempting to speak for WSPSA.  I'm a member but I'm not on the Board.  But I certainly know WSPSA members and its Board quite well.  Given their actions in the past I think the above statements will be proven close to the mark.

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Robin Mullins February 19th, 2010 11:25:15 PM

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