CHANGES & ISSUES WITH USING CONSULTANTS OR VOLUNTEERS

As employers have had tight times, you have noticed and experienced many who have had to downsize the number of employees.  So for the past couple of decades, employers have been using more and more "consultants" and "volunteers" in their working world.  Some employers would actually release an employee one day and then call them the next day to offer a position of being a consultant to work on a "project" for the company.


As most business owners know, the IRS produced specific guidelines to differentiate between employees and consultants quite some time ago.  Most employers have complied with these stipulations, though other employers have pushed their limits.


In more recent years, some employers have also increased the number of volunteers they use in their organizations.  Though these "volunteers" are not paid, many are given strict rules and requirements to follow.  Many of these company volunteers are even required to attend training sessions, wear uniforms, "clock in and out", and request time off like employees.


Since certain companies are becoming more aggressive about the use of their "volunteers and consultants", the government is starting to take a more active approach to this "alternative workforce", especially if companies are using them without pay, nor paying taxes for them.


Therefore, it would behoove employers to review their uses of consultants and volunteers, as the rules for using these people and how they should be compensated or treated will most likely be changing.  It may even be worth contacting your business attorney for advice and learning what changes lie ahead.


Using consultants can be a great approach to tackling short-term projects, and volunteering is a valuable way for many senior citizens and others to contribute to special organizations for which they have a passion.  Still, there are some corporations, etc. who might be taking advantage of the people involved.  Nevertheless, this message is to encourage those business leaders to become clearly informed of what changes may be coming soon.