Home > Field Audits, Industry Issues, Labor and Industries, Prime Contractor Liability, workers compensation compliance > The Well-deserved Assault on the Independent Contractor

The Well-deserved Assault on the Independent Contractor

Yes, you read it right. Most State workers’ compensation programs are built on the honor system. When economies and crooks cheat, everyone loses. The auditors don’t know who to believe because there is no accountability.

It would be nice if accounting programs could program these rules and regulation so this problem would go away. That would mean insurance, payroll, bookkeeping, and accountants would have to train their staff. But as long as they want to keep their distance (errors and omissions), this will not happen. (They make money conducting audits, don’t they?)

So, who is going to change the environment? Folks that are trained in compliance. They are around but few in number. Most of the big companies have them.

My bet is to have the industry associations take on this task. Each industry and State can do this if they wanted. The alternative is Department of Labor will continue the 1099 audits, and no one will qualify for the Voluntary Classification Settlement Program.


  1. July 16, 2014 at 6:36 PM

    Sorry, this is all we have for now. As you see today, the theme has been changed. We are going to teach more about specialty payroll programs because we are going to take on the monopolies and insurance companies exposing their methods of doing business far outreaching their clients pocketbooks.
    Our programs keep an eye on accurate reporting and the year end statutory audits. Just think–a small company busy a workers’ comp policy and has no idea if he is being overcharged. Our new version from Time Integrator.com will change all that in August.
    Best Regards, Ted

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