Page 55 - BusinessWest December 22, 2021

Classify
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employees;
• Opportunity for profit or loss,
which is often an indicator of an inde- pendent contractor;
• Services available to the market, as independent contractors are generally free to seek out business opportunities;
and• Method of payment. An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time even when supplement- ed by a commission, while indepen- dent contractors are most often paid for the job by a flat fee.
Relationship
Perception of the relationship
is considered, but the interactions between workers and employees is what ultimately defines the relation- ship. Written contracts are considered; however, an employer cannot classify their workers as independent contrac- tors when they, in fact, treat them like employees. If the company is provid- ing employee benefits, insurance,
paid time off, sick days, or pension plans, then the worker is most likely an employee.
PeoplesBank
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people, not committees, to make deci- sions, Senecal explained. “If the loan is a large loan, yes, it goes up to commit- tee discussion. But in my 25-plus years at the bank, maybe two loans didn’t get through loan committee — because the lenders know what they’re doing.”
By All Accounts
When commercial lenders at PeoplesBank were focusing solely on real estate, they excelled at deals for warehouses, multi-family facilities, mixed-use properties, and strip malls. With C&I, they’re talking to manufac- turers, healthcare practices, nonprofits, lawyers, accounting firms, and many more entities. And that requires spe- cialized knowledge and, yes, strong relationships.
“You’re not lending on the build- ing, you’re lending on the business,” Senecal said. “In real estate, we lend the money and hope to get paid back. If we don’t, we have the real estate. On the business side, it’s a whole different aspect of trying to understand, ‘how are you going to pay the loan back?’ When you get into all these other industries, it takes a unique skillset to identify whether or not it’s viable and the loan is a good loan or not.”
It’s a skillset the bank plans to fur- ther grow as it evolves its lending pres- ence in the region’s C&I landscape. u
Joseph Bednar can be reached at [email protected]
Another area to consider is the per- manency of the relationship. Employ- ees are more likely to be hired indefi- nitely, and either party can terminate the relationship at any time, for any legal reason. Independent contractors’ rights are subject to a contract.
Penalties for Misclassifying Workers
The consequences for misclassifying employees as independent contractors can include IRS penalties and other non-tax implications. The IRS may assess back taxes against the company and demand that the company pay the
employees’ share of unpaid payroll and income taxes, regardless of whether or not the independent contractors met those tax obligations. Companies can also expect to pay IRS penalties and interest. Further, workers can file a law- suit against employers to demand back pay, overtime, and benefits.
Review Your Current Workers’ Status and Hiring Policies
The potential tax and non-tax sav- ings do not outweigh the significant cost of misclassifying workers. It’s important to review your hiring poli-
cies, even if you are comfortable with your classification of current work- ers, to ensure that you are meeting
all applicable standards for classifica- tion. Talk with your advisors if you believe you may have misclassified an employee or have questions about the standards. u
Sarah Rose Stack is the Marketing manager for Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.
THE CITY OF SPRINGFIELD
REQUEST FOR PROPOSALS
The City of Springfield is requesting proposals for the use of American Rescue Plan Act funds in the following categories: Household Assistance, Senior Assistance, and Economic Development/Job Creation. The RFPs are available at 70 Tapley Street in Springfield, and through the City’s website: https://www.springfield-ma.gov/finance/arpa. Proposals will be accepted on a rolling basis, starting November 1, with qualified respondents receiving grants to address negative health and/or economic impacts from the COVID-19 pandemic. Interested parties are strongly encouraged to apply.
La Ciudad de Springfield está solicitando propuestas para el uso de los
fondos de la Ley del Plan de Rescate Americano en las siguientes categorías: Asistencia al Hogar, Asistencia para Personas Mayores y Desarrollo Económico / Creación de Empleo. Las RFP están disponibles en 70 Tapley Street en Springfield, y a través del sitio web de la Ciudad: https://www.springfield-ma.gov/finance/arpa. Las propuestas se aceptarán
de forma continua, a partir del 1 de noviembre, y los encuestados calificados recibirán subvenciones para abordar los impactos negativos para la salud y / o económicos de la pandemia de COVID-19. Se recomienda encarecidamente a las partes interesadas que presenten su solicitud.
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