Independent contractor vs. employee – Is your business classifying workers properly?

Description

Abstract: The “gig economy” has affected nearly every industry and profession. From a business’s perspective, there are tax and other advantages of classifying workers as independent contractors rather than employees. But it’s important to remember that workers aren’t independent contractors simply because a company says they are. This article examines how a worker’s status is determined and explains the tax advantages of both classifications. A sidebar discusses the need for companies to consider all applicable standards, both federal and state, as part of the classification process.