We’re 3 weeks into a new administration. While Biden and co get busy on their top priorities, history tells us a little of what to expect during the next four years. The bottom line is that Democratic-led governments tend to tighten up on businesses and are very union/employee friendly. They also tend to increase regulations while Republicans tend to loosen them.
True to trend, Trump’s team based worker classification on an economic reality test, which would make it easier to define workers as independent contractors while Biden’s plan makes misclassification a top priority and proposes having more investigators available to address the issue. He also plans to make the test for identifying independent contractors more uniform.
So what does it mean for you?
It’s important for businesses to be compliant under any administration but with strict worker classification being named a top priority for this administration, it’s all the more important.
The bottom line
Someone on your team or on your payroll partner’s team needs to keep up with the changes to protect your business, stay compliant, and reduce the risk for fines and attention from the IRS. If you don’t have the in-house team to do it yourself, it’s worth considering working with a partner.
In our world, accurate worker classification and top notch risk management are always the priority. We are always the first to be aware when change is in the air as well as when something becomes official. We track rules in every state as well as on a federal level and offer services to help clients stay compliant.
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