Disagreements along party lines and flip-flopping on issues – health care, payroll tax cuts anyone? – didn’t solely define the federal government this past year. It’s not always the case, but 2011 actually brought several congressional decisions which benefit the small business. From repealing the 1099 paperwork requirement to the launch of entrepreneur-friendly Startup America, small businesses scored some noteworthy victories.
Increasing numbers of independent contractors are being utilized for their goods and services in this, an era where companies are perhaps unable to hire long-term employees. There are specific criteria a company must examine when determining whether someone performing work for them is to be paid as a contractor or an employee. A company can face severe legal and financial repercussions if they improperly label workers.
Newly-hired employees are required to supply identification that establishes their ability to legally work in the United States. The I9 form, or Employment Eligibility Verification Form, is provided by the government to employers for this purpose. Workers must, upon hiring, provide any acceptable combination of documents for the establishment of both physical identity and employment eligibility. Many employers unknowingly find themselves hiring what appears to be someone eligible to work in the United States, but upon further investigation this person is not eligible. For this reason, the government has established E-Verify, a free, internet-based system allowing employers to check the employment eligibility status of newly-hired persons.
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