10/01/2020
Most estate sale companies utilize subcontractors rather than W-2 employees and there has long been a debate about whether those employees are classified correctly. The Dept of Labor is considering a rule change that creates a "bright line" to clearly distinguish between the two. If your people work for you on an ongoing basis at your direction, don't work for your competitors, and don't have the ability for profit AND loss, then under the new rule they should be classified as W-2 employees. This rule may come in to effect before the end of January 2021. If your team is all 1099 subs you may want to reach our to your tax professional/financial advisor to figure out what adjustments you should consider before the end of the year.
www.huschblackwell.com/newsandinsights/dol-proposes-rule-to-distinguish-independent-contractors-from-employees-under-flsa
The Department of Labor (DOL) announced a proposed rule last week that will change the way in which “independent contractors” are distinguished from employees under the Fair Labor Standards Act (FLSA). The rule comes in response to calls from trade organizations and others seeking clarification ...