Blog /
Why I’m Glad the IRS Is Going After Permalancers
May 25, 2010 | | Comment
BusinessWeek published a great article last month about the IRS cracking down on companies that miscategorize permanent workers as freelancers.
"In February the IRS launched a three-year program that will examine 6,000 companies to find permanent workers misclassified as freelancers in violation of the Tax Code. President Obama's proposed 2011 budget includes funding for 100 additional federal staffers to pursue such cases, and it would repeal a 32-year-old rule allowing companies in industries ranging from construction to health care to legally classify long-term employees as independent contractors."
I don't like BusinessWeek's headline, though. "The IRS Targets Independent Contractors" makes it sound like freelancers are the ones in trouble. No, the IRS is going after the companies that shamelessly exploit freelancers, and it's about goddamn time.
I have been offered so many "temp" or "temp-to-perm" contracts where I don't get health insurance, paid time off, or other benefits, but I am expected to work regular business hours, adhere to the company dress code, and always work on-site.
I am sorry, but NO. If you want me to work on-site and work 40 hours a week, I need health insurance. Otherwise, I want the trade off of flexible hours and working from home. And, most importantly, having the time to take on other work. I'm a fast worker, and I guarantee I am not spending all 8 hours a day on-site actually working, because my supervisors can't keep up with my output. I spend plenty of time twiddling my thumbs, waiting to receive feedback. That's time that I could put to use seeking out other clients and working on other projects, if I weren't working on-site.
The last temp job I took, I spoke with other temps who had been with the company for over three years. Three years, and they were still being strung along and not given benefits. And the IRS is looking to crack down on just this kind of situation. Frankly, this will benefit freelancers, as they will have greater leverage against being coerced into permalance arrangements. Hopefully permalance arrangements will decrease significantly, or even go away altogether.
I can't see any benefits to being a permalancer at all, but there could be some. Has anyone had a good experience as a permalancer?
