10/19/11
(COLUMBUS, OH) – With recent economic challenges, companies of all sizes have begun to embrace non-traditional staffing options, including temporary staff, project-oriented assignments, flexible schedules, telecommuting, part-time or shared positions, compressed work weeks and outsourced functions. Recently the IRS announced a program to encourage businesses who use certain types of independent contractors to voluntarily reclassify them as employees on an ongoing basis in order to avoid tax liabilities, penalties and interest. The Voluntary Classification Settlement Program (VCSP) is one of several recent business staffing compliance-oriented programs designed to increase federal tax revenues.
“Many entrepreneurs and business owners, in an attempt to do more with less, have embraced a more flexible workforce. But they’re not sure what the rules are when it comes tax time,” said Kristen Harris, co-owner and founder of Portfolio Creative, the nation’s fastest growing creative staffing firm.
The IRS has a 20 factor test to help companies determine if a worker is an independent contractor or employee, but many busy business owners are not aware of it, or find the process confusing. That can become painful should they discover after the fact they made a mistake.
“We try to make sure our clients know that these rules exist, and that by using an outside staffing agency like ours, the contractor vs. employee issue is no longer a factor,” said Harris. “Many companies who have successfully saved costs with flexible staffing don’t know they can outsource their payroll to protect themselves from compliance hassles.”
Industry experts anticipate a continued increase in worker classification investigations, due to President Obama’s 2011 fiscal budget that set aside $25 million for misclassification initiatives that include 100 additional enforcement personnel and competitive grants for states looking to recapture funds. Currently approximately 10 million U.S. businesses rely heavily on independent contract workers.
About Portfolio Creative
Portfolio Creative is the nation’s fastest-growing creative staffing and recruiting firm. An Inc. 500 fast growth company for the past three years, Portfolio Creative connects clients with creative talent in all areas of design, marketing, communications and advertising. It also provides executive recruiting, payroll and direct hire services.
Founded in 2005, the company has been recognized with awards from Staffing Industry Analysts, Columbus CEO magazine, Business First, the Columbus Chamber, Enterprising Women magazine, the Stevie Awards for Women in Business, the American Staffing Association, the Ohio Department of Development and the National Association of Women Business Owners. Clients and creative talent can call (614) 839-4897. More company information and a job board is available online at www.portfolioiscreative.com
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For further payroll/compliance questions, please contact a specialist at Portfolio Creative at hr@portfolioiscreative.com.
