In this video, Nance discusses worker misclassification and some related penalties for New York employers. Three things you need to know:
- There is no such thing as a 1099 employee.
- An independent contractor is generally an independent business owner with a contract.
- Workers compensation penalties accumulate at a rate of $2K for every 10-day period an employee is not covered, and there are additional penalties for not having disability and Paid Family Leave coverage.
Before sending your 1099-MISC and W-2 forms, consider an audit for alignment with IRS, Department of Labor, and Workers Compensation Board criteria.
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Nance L. Schick, Esq., is a workplace attorney, ethno-religious mediator, and conflict resolution coach based in New York City. Her goal is to keep employers out of court and build their conflict resolution skills–so everyone has a better work experience. She is creator of the Third Ear Conflict Resolution process, author of DIY Conflict Resolution, and an award-winning entrepreneur acknowledged by Super Lawyers (ADR, 2018 & 2019), the New York Economic Development Corporation/B-Labs (Finalist, Best for NYC 2015 & 2016), U.S. Chamber of Commerce (2015 Blue Ribbon Small Business), Enterprising Women Magazine (Honorable Mention, 2014 Woman of the Year awards).