Tag Archive for Section 530

Worker Classification Questions—Employee or Contractor?

Annette Nellen

Worker classification—whether a worker is an employee or an independent contractor—is a longstanding and sometimes difficult issue. There are a few different classification schemes applicable to different types of laws (labor, tax, etc.). Employers tend to favor contractor status when possible to avoid payroll taxes, application of most labor laws (such as overtime), and state laws governing how someone is paid, sick pay, reporting, and more.

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Tax Paper Publication Announcement: Why Section 530 of The Revenue Act of 1978 Applies To The States

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My paper, “Why Section 530 of the Revenue Act of 1978 Applies to the States,” is now published in the San Jose State University’s online MST peer-reviewed The Contemporary Tax Journal:

The paper is found online here:

The paper is also now posted in my TaxConnections Tax Library. Read more

Why Section 530 of the Revenue Act of 1978 Applies to the States

Washington Monument and the U.S. Capitol Building

Section 530 of the Revenue Act of 1978 may already apply to the states, the Affordable Care Act, and title 29 issues. Don’t be surprised if state unemployment agencies and DOL are rabid in pursuing independent contractor misclassification issues in your business or your clients’ businesses. But don’t give up the section 530 issue when those agencies claim it is limited to subtitle C employment taxes.

The Department of Labor and the Internal Revenue Service entered into a Memorandum of Understanding (MOU) on September 19, 2011. The next day, six states joined the MOU melee. Now, a few years later, the tale of the tape is in.

The Obama administration undertook a strategy to attack Section 530 of Revenue Act of Read more