Small businesses in Cedar Rapids owe a large part of their success to independent contractors. Businesses rely on these specialists for help in law, accounting, fitness, and other services. Independent contractors provide the specialized knowledge and skills that small businesses owners may not possess.
As a retired accountant, I have seen the stress placed on small businesses when they try to handle their money without the proper training. Hiring an accountant helps businesses to fully use their assets and remain in good standing with the Internal Revenue Service.
However, small businesses have been under increased scrutiny and regulation because of a few companies allegedly misclassifying their workers.
The IRS and U.S. Department of Labor have partnered to start a “witch hunt” to find more misclassifications and increase regulations on all small businesses. It is a misstep to make all small businesses suffer for the irresponsible actions of the few.
The DOL and IRS actions are pushing economic growth backward.
Small businesses have started to avoid independent contractors for fear of harsh penalties. Let’s not place a hurdle in the way of small businesses that need independent contractors to prosper.
Comments are closed.