Classifying someone who performs work for you as an independent contractor or as an employee can have significant ramifications. The impact may affect obligations and liabilities for employment issues as diverse as health insurance, benefits, employment taxes, wage and hour, workers compensation, unemployment, and the like. During our recent webinar about independent contractors, many of our listeners asked about what circumstances they should take into account when deciding whether a particular individual who works for them is an independent contractor or an employee.
Here is the link to the IRS website devoted to the issue. If you click on the “Behavioral”, “Financial” and “Type of Relationship” headings listed under “Common Law Rules”, you will find the IRS’s list of factors for employers to consider.