Contractor

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Independent Contractors: Classify Carefully

Many businesses use independent contractors to help keep their costs down and provide flexibility for short-term needs. However, the question of whether a worker is an employee or an independent contractor is complex.

Be careful that your independent contractors are properly classified for federal tax and employment tax purposes because if the IRS reclassifies them as employees, it can be an expensive mistake.

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Worker Classification: Employee vs. Contractor

If you hire someone for a long-term, full-time project or a series of projects that are likely to last for an extended period, you must pay special attention to the difference between independent contractors and employees.

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