AAP News

Don’t Fall Victim to Misclassified Workers: 1099 VS Employee

Many employers find themselves questioning how to properly classify their employees. Often, employers are caught in the trap of trying to cut tax liability costs by paying someone as a 1099 contracted worker but inevitably, they may find themselves audited and fined for misclassifying employees.
Three common rules to remember when classifying contracted or standard workers are:
1) Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
2) Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
3) Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
In 2011, there will be increased budgeting for additional agents to audit worker classification. To be sure that your company is compliant, it is best to refer to www.irs.gov or to contact them to clarify questionable worker categorization. Visit our website at www.aapayroll.net , click on Worker Classification Audio or Transcript Tutorial for more detailed information and instructions. As well, if you are enrolled in our HR On Demand services, these questions can be easily answered for you by an HR Professional!
*Information contained in this article was retrieved from the IRS website.*

Adding Benefits To Your Business

Slowly, businesses are regaining some momentum this year and areas, such as Major Medical Benefits, are being readdressed. AAP has an established, trusted and competitive partner, Blue Water Benefits. Large companies, small businesses and everything in between can benefit from an audit of your current policy or have them implement a new benefits program according to your budgetary and company needs. Call your sales representative or email us at sales@aappayroll.com to get more details or to schedule an appointment!

HR Tip of the Month

Five Essential Hiring Tips
1 Use a job description to communicate the essential job functions and expectations.
2 Require candidates to complete and sign an employment application instead of using only the person’s resume.
3 Avoid asking illegal interview questions, and focus on those based on successful behaviors.
4 Follow-up with an offer letter noting an RSVP date, a hire date, compensation, and any pre— conditions to employment.
5. Conduct reference and relevant background checks to assess the candidate’s integrity.

Sales Team Addition

We are excited to have Wendy Brock as a new addition to the AAP Sales Team. Wendy joined us in July and will be the new Summerville area representative. Welcome to AAP!

AAP Employee of the Month
Katie Preslar

AAP Employee of the Quarter
Donna Bond

HIRE ACT

We have made great effort through our newsletters, email notifications, and individual contact to educate and assist our clients with the HIRE Act passed in March of this year. If you have not already contacted us for details or for information on how AAP can assist in tracking and reporting for HIRE Act, please call today!