Balancing Business and Law Blog

Independent Contractors

April 26, 2006

Many small businesses choose to hire "independent contractors" rather than go down the complex path of hiring employees. You need to be aware of both the tax and legal issues around the differences between the two. The IRS has very specific guidance as to what defines an "independent contractor" and could penalize you with back payroll taxes and penalties if you improperly categorize a worker as an independent contractor instead of an employee. Independent contractors typically have control over how and when they perform the work. The IRS Publication 15-A: Employer's Supplemental Tax Guide can provide you more information that will help you ensure your "independent contractor" actually is one. From a legal perspective, the risk you undertake in bringing on an independent contractor is different than the risk associated with hiring an employee. Your contracts and possibly your company's policy manual must reflect the specific risks associated with bringing on each. If you have anyone working for your business, you need a description of policies and procedures. How these rules are applied to various types of workers may be the key to defending someone's role as an independent contractor.

Ladies Who Launch

April 19, 2006

The Seattle Times had a piece on a group called Ladies Who Launch, a networking and support group for entrepreneurs based in New York but with 22 chapters nationwide. I noted this organization when I first began looking for networking opportunities for my own business and thought it was very interesting. The article explains that the group doesn't teach the nuts and bolts of entrepreneurship but rather the members critique and provide guidance and tips to one another's business ideas to help each member succeed. The group has recently received significant press through this article in the New York Daily News and on NBC's Today show. Check out their website www.ladieswholaunch.com to find out more about the group and the Seattle "incubator".

Women in Small Biz Matchmaking Expo

April 13, 2006

Mark your calendars for the Women in Small Biz Business Matchmaking Expo. This annual event is hosted by Bettina Carey, founder of Women in Small Biz, and focuses on how women business owners can enhance their success. It includes speakers, networking, and a fair-like setting with a focus on matching up small business owners who can ulitmately help one another through referrals. The dates for this year's event will be held on August 26 & 27.

New Advertising Avenue

April 06, 2006

One of the big ideas at the CTIA wireless conference in Las Vegas this week is the idea of advertising on wireless devices, especially cell phones. Advertising is becoming more and more important to the wireless carriers and application providers to help subsidize the cost of providing applications and web access on wireless devices. MSNBC.com and Action Engine, based in Bellevue, are offering a free application for wireless phones that allows users to watch TV and view videos. The application can be offered free of charge because it is subsidized by banner ads and commercials that run in conjunction with the application. The opportunity is great with 24 million users accessing content via their cell phones each month. If internet advertising has been valuable to you, this may be a new avenue to reach customers. Check out the article at the Seattle Times.

Health insurance for part-time workers

April 03, 2006

Here's a cool idea -- the ability for employers to contribute to a health care program for their part-time workers. A new company, Dominium Healthcare Solutions, based in Olympia is allowing employers to contribute funds into a pool for part-time employees to use toward health insurance. Employees who work for multiple employers could get contributions from each of them and the amount in the fund would determine how much money the employee could use toward their insurance. In addition, because the plan is an individual plan, not a group health plan, the employee could keep the insurance even after leaving the employer. The article on Dominium was published in the print version of the Puget Sound Business Journal dated March 31 - April 6. I could not find a link to the article on their site.

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