Mercer Law PLLC is pleased to share some of its success stories representing clients before state and federal agencies — i.e. Internal Revenue Service (IRS), Department of Labor & Industries (L&I) and Employment Security Department (ESD) — over the past few months. A win in an independent contractor non-compete case is also included. These cases have been selected to show the variety and types of cases the firm handles for our clients. Names and specific business information have been withheld for client confidentiality.
- Potential assessment of several hundreds of thousands of dollars reduced to a few thousand dollars. A Seattle business with numerous independent contractors made various errors in complying with Washington State’s independent contractor laws. These errors placed the business out of compliance with Washington state’s ultra-strict independent contractor laws, and exposed the business to hundreds of thousands in backtaxes, penalties and interest. Penalties alone exceeded $245K. Mercer Law represented the firm and the firm obtained a tax assessment that was a tiny fraction of what could have been levied and what the business owners feared. The agency conducting this assessment deserves much credit. They saw that the business was trying to do things right, and as a result, was extremely generous in providing breaks and concessions.
- $123K employment tax assessment reduced to $66K. A Seattle general contractor was assessed back taxes, penalties, and interest after an auditor determined that subcontractors for the firm failed to qualify as independent contractors. Mercer Law represented the general contractor on appeal and obtained reversal of portions of the auditor’s decision, and a 46 percent reduction in the total assessed amount.
- 78 percent reduction in employment tax assessment. An Everett general contractor was assessed back taxes, penalties, and interest after an auditor determined that subcontractors (carpenters, painters, plumbers, etc.) for the firm failed to qualify as independent contractors. Mercer Law represented the general contractor on appeal and obtained reversal of portions of the auditor’s decision, and a 78 percent reduction in the assessed amount.
- 53 percent reduction in tax assessment. A North Seattle general contractor was assessed back taxes, penalties, and interest after an auditor determined that subcontractors for the firm failed to qualify as independent contractors. Mercer Law represented the contractor on appeal and obtained reversal of portions of the auditor’s decision, and a 53 percent reduction in the assessed amount.
- Successful enforcement of an independent contractor noncompete agreement. Mercer Law represented a client in enforcing a noncompete against a former independent contractor, and obtained a settlement to the client’s satisfaction.
More of our results are available here.
Please note that Mercer Law PLLC cannot guarantee a given result or outcome for any case. The results for each case cited above should not be relied upon as a guarantee or promise of similar results. Each case, therefore, must be evaluated by the relevant facts, circumstances, and law with its own individual outcome. These cases do indicate, however, that it is often a good idea to never not ignore your appeal rights. See our recent blog post on this issue here.
For more information on how to comply with independent contractor obligations, consult with an experienced independent contractor law attorney, and check out 1099 Review™, a Mercer Law PLLC product, and Washington’s State’s first online independent contractor risk assessment tool and resource center.
