Quick update on paying LCA's

Mitch Ribak
Published: 09/12/2011
Posted by: RET Staff

We spotted this article on Mitch Ribak's blog.

Of course in life there are always challenges. Sometimes you win and sometimes you lose. In this case we lost.

As you know I"m a big advocate of our LCA program. We have paid them as independent contractors since we started testing the program 4 years ago. Unfortunately one of our LCA's left last year and filed for unemployment. This triggered and investigation as to whether LCA's are employees or independent contractors from the Department of Revenue.

We had our appeals hearing last week and unfortunately we lost and now have to add our LCA's as employees. In addition, we will have to pay back unemployment taxes and payroll taxes on these "employees".