At FocusPay Solutions, we are committed to providing you with quality service and solutions that help simplify your process, allowing you to......run your business.

Here you will find regular tips to help your organization be a more productive and efficient work-place.

Table of Content

1. Subcontractor vs. Independent Consultant vs. Employee
2. Why You Need a Payroll Continuity Plan
3. Failure to Return Company Property: What Are the Payroll Rules?
   
   

Subcontractor vs. Independent Consultant vs. Employee

We often hear our clients or other government contractors use "subcontractor" and "independent consultant" interchangeably; however, they are not synonymous. Sometimes we hear independent consultants being referred to as "1099s," which is a misnomer because 1099s will be issued to both unless the subcontractor is an S or C Corporation. An individual may be working for a company as an independent consultant but based on Department of Labor Fair Labor Standards Act (FLSA) guidelines; they may actually be determined to be an employee. It is vital to differentiate and classify the worker correctly, or there may be fines and penalties. Continue reading.

Why You Need a Payroll Continuity Plan

Payroll is a mission-critical function — one that must be done even amid disasters or emergencies, such as: Continue reading.

It's not uncommon for employers to entrust company property to employees, such as:

• Office keys.
• Building entrance badges.
• Uniforms.
• Computers/laptops.
• Cellphones.
• Vehicles.
• Job-specific tools or equipment.

If the employee terminates and does not return the property, you may be tempted to hold back their final pay until they return the item.

However, withholding the employee's final paycheck is against the law. Continue reading.

We look forward to helping you FOCUS on your business.

Sincerely,

Your FocusPay Solutions Team