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CWS 30 - 2.6 (Mar 17, 2010)

Contingent Workforce Strategies 30, March 17, 2010
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SourceRight Solutions
Managing Co-employment, Misclassification Risk & How the Fed. Gov't. Plans to Recover $7B in 10 Yrs.
Column Corner

Ask the Procurement Guy:
One or Two Contracts?
Keeping your MSP and VMS separate or under joint agreement
By Bryan Pena

Feature PhotoWe are considering a number of contingent workforce program models and are stuck on a few points amongst the project team. What do we need to consider when deciding between a joint contract or separate VMS and MSP models?

Your question is at once simple and complex. Simple in that the number of variables under consideration are relatively few and range from just one-stop shop or to not one-stop shop. That is the simple part. The complex part is a little bit more tricky to nail down as succinctly. ...

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Heard on the Street

The amount of enforcement involving independent contractor reclassification has gone through the roof. We are seeing a trend mostly driven by budgetary issues at the state and federal levels.

--Gene Zaino, MBO Partners' president & CEO

The United States government is funded on a W-2 income taxation system. ...

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Estimated Total Expense Savings Due to Use of Contingent Labor

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Behind the News

A Problem with Our Tax Code
In mid-February, a plane crashed intentionally into the Internal Revenue Service's office in Austin, Texas. The pilot's suicide note indicated his disturbed mind and the pointlessness of the crash. But in his note, there was a reference to a federal tax law, Section 1706 of the 1986 Tax Reform Act. ...

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Legal Eagle

Oops! They Qualify for Overtime
In a recent court case, Pellegrino v. Robert Half International Inc., a California appeals court ruled that a staffing firm's recruiters were not subject to the state's administrative exemption from the requirement to pay overtime. After applying California's five-part test ...

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Keys to CW Success

Staffing Industry Analysts' Products and Services

Where's Waldo? And is he an independent contractor?

In what some are calling an "underground economy" for tax dodging or an employment "grey zone," independent contractors (IC) take many shapes. Exotic dancers, IT engineers, plumbers, Wyclef Jean's mistress/assistant, home healthcare workers, public relations agents, and that's just for starters. Further, the Fed is looking for them. Specifically, federal agents will be keenly interested in what you call your worker -- employee or IC. Getting this wrong could cost you dearly.

The U.S. federal government is gearing up to conduct 6,000 random audits, and hiring hundreds of auditors to do it ... wonder if they'll outsource any of this work to ICs? Kidding aside, as an HR professional, project manager, finance or operations executive, talent sourcer and manager, you can't afford to miss the 2010 Contingent Workforce Risk Forum, May 11-12 in Washington DC. Get the big picture take on contingent labor and the risks around it. Learn the critically important, concrete steps to mitigating the risks surrounding using contingent labor. Among the sessions are these three that focus on IC misclassification.
Read more and register now at a discount.

If a colleague shared CWS 30 with you and you'd like your own FREE bimonthly copy, please subscribe here.

CONTINGENT WORKFORCE STRATEGIES 30 is published bimonthly by Staffing Industry Analysts and is delivered to buyers of staffing services. For change of email address write to or call 1-800-950-9496.

To contact the editor, please e-mail Subadhra Sriram or call 650.390.6194.

To advertise, contact Diana Gabriel or call 650.390.6193.

Copyright 2010 Crain Communications Inc


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