Phoenix, AZ (PRWEB) March 12, 2015
The Ahern Advisory is a weekly newsletter for the trucking and transportation industry written by Andy Ahern, founder and CEO of the logistics consulting firm of Ahern & Associates. Eagerly received each week by subscribers, the newsletter covers topics of crucial importance for the industry.
With subjects such as improving sales, business integrity, preparing to sell, driver recruiting and retention, and much more, the newsletter has garnered widespread accolades and is one of the most highly-anticipated newsletters in the country.
In the latest edition of the highly-acclaimed Ahern Advisory, Andy Ahern discusses the IRS and its views on drivers being considered independent contractors vs. employees. The IRS is continuing to examine the relationship between the workers and their businesses, and one of the things they focus on is the degree of control and independence in each relationship. This includes both behavioral and financial control. Documentation of these factors is key to making a determination. Andy Ahern recommends that workers retain a transportation attorney that is well-versed in contracts to have them reviewed and rewritten, if necessary.
While some factors are considered by the IRS to indicate a worker is an independent contractor, there are others that indicate the worker is an employee. “Remember one thing,” says Ahern. “The IRS’s objective is to accumulate as much tax revenue as possible to support the operating expenses of the government.”
He goes on in the newsletter to explain that the key consideration for a business is making sure that independent contractor agreements are structured in such a way that the contractor is in fact an independent contractor. While a contract is important, however, defining the actual underlying working relationship is crucial.
The misclassification of employees is something that all trucking companies need to review, Ahern suggests. Owners of trucking companies need to recognize what the consequences are, as they can be held liable for employment taxes for the workers should they classify an employee as an independent contractor without reasonable basis for doing so.
“The point I’m making is, get help. If you are audited by the IRS, don’t do it by yourself. Have a tax accountant or a tax attorney represent you, and give them the power of attorney to work through the issues,” Ahern explains. Government statistics state that within 5 years, the biggest employer in America will be “self”. He goes on to state that just because a company has written contracts with 1099 wage earners, it doesn’t mean those companies are safe.
The latest issue of the Ahern Advisory goes on to discuss forced dispatch, the domino effect of an independent contractor being reclassified as a worker, and the urgency of having contracts reviewed on a regular basis to stay ahead of the curve and take care of an owner’s most valuable asset – the business.
Available via the Ahern & Associates website, via email and also in PDF format, the Ahern Advisory can also be accessed in a video podcast format as well, making the important information convenient and readily-accessible for all interested readers. Persons interested in a free subscription to the Ahern Advisory newsletter can complete a short subscription form to get started.
About Ahern & Associates, Ltd.
Ahern and Associates is North America’s leading trucking and transportation management consulting firm. The skilled consultants at Ahern and Associates specialize in mergers and acquisitions of trucking and logistics companies as well as the restructuring and evaluation of existing carriers that seek to increase operating efficiency and improve profitability. Since 1987, Ahern and Associates has aided hundreds of buyers in the acquisition of trucking and logistics companies throughout the U.S. and Canada as well as assisting many transportation and logistics companies in reducing their overall operating costs and increasing their profitability.
For more information, please call 602-242-1030 or visit http://www.ahern-ltd.com.