MASSACHUSETTS
CRACKS
DOWN ON
CONTRACTORS
A little-noticed set of provisions in a
law overhauling public construction
contracting in Massachusetts greatly reduces
the ability of Massachusetts employers to
use independent contractors. It also greatly
increases the penalty for misclassifying
employees as independent contractors.
The additional risk is especially high
for state contract holders and bidders who,
in addition to civil and criminal penalties,
also face disbarment from contracting with
the state or any municipality.
The new law says an individual performing
any service is an employee unless:
- The individual is free from control
and direction in connection with the
performance of the service both under
his contract for the performance
of service and in fact; and
- The service is performed outside the
usual course of the business of the
employer; and
- The individual is customarily
engaged in an independently established
trade, occupation, profession or
business of the same nature as that
involved in the service performed.
For reporting and paying unemployment
compensation taxes, whoever fails to treat
an individual as an employee faces criminal
sanctions.
Any entity and the president and
treasurer of a corporation and any officer
or agent having the management of the
corporation or entity is liable
for violations.
Since federal withholding rules are based
on state law, this act will create liability
under internal revenue code
rules for Massachusetts employers.
Article provided by:
NICOLAI LAW GROUP, P.C.
BUSINESS LAW & LITIGATION
413-272-2000
What's
New at MassOne?
Roy Vaughn has been hired to do property
inspections. A postcard will be sent to the
property owners letting them know Roy will
be taking outside measurements and photos to complete his report.
We have just received our Accident
Reporting Kits. They
consist of a disposable camera, pen,
registration holder, and accident diagram.
They are for
Commercial auto owners and operators, to be kept in the
glove compartment of the auto. If you are
interested in receiving an Accident
Reporting Kit, please
contact your customer service
representative.
HOW TO
CONTROL THE COST OF INSURANCE
HELP TO
KEEP AUTO INSURANCE RATES LOW BY:
-
Driving a safe car
-
Increasing your
deductible limits
-
Making sure your
driving record is good (no tickets or
accidents)
-
Taking advantage of
any discounts that may be available*
-
Dropping collision
coverage for older cars with relatively low
cash value.
* Insurance coverages and
discounts are subject to availability and
qualifications. Other terms, conditions, and
exclusions may apply.
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