The Down Side of Downsizing
Fiore, Nicholas, Journal of Accountancy
Many corporations have adopted the practice of hiring temporary employees, leasing employees or using independent contractors to increase profits. Such a practice has well -- documented tax and nontax advantages. On the tax side, employers are not responsible for federal insurance, unemployment and income tax withholding on payments to these workers. On the nontax side, the employer need not be encumbered by a large permanent payroll, can greatly simplify its a accounting burdens, can limit its tort liability and may avoid the laws dealing with unions, collective bargaining and certain state and federal laws. In addition, the employer need not provide medical insurance, pension …
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Publication information: Article title: The Down Side of Downsizing. Contributors: Fiore, Nicholas - Author. Journal title: Journal of Accountancy. Volume: 184. Issue: 1 Publication date: July 1997. Page number: 34. © 2009 American Institute of CPA's. COPYRIGHT 1997 Gale Group.
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