Independent or employed? Understanding the ins and outs of employee classification

Description

Abstract: The tax implications of employee misclassification can be significant, and the IRS, the U.S. Department of Labor (DOL) and even some states are weighing in. This article discusses some of the issues, including the importance of an “economic realities” test that attempts to distinguish workers who are economically dependent on an employer — and are thus employees — from those in business for themselves and therefore not economically dependent.