Who is Considered an Independent Contractor?
Hiring independent contractors eliminates your need to pay wage taxes, to offer benefits or to provide office space, which can save you 30 - 40% on labor costs*. In order to be considered an independent contractor, the relationship must meet the following criteria.
- The payor/employer controls only the result of the work to be completed
- The contractor controls how the work will be done
- The contractor controls where and when the work will be done
Speaking with an experienced employment attorney is an easy way to ensure your situation meets the requirements and you avoid penalties and back taxes.
Join LegalShield today and speak with an attorney in 4 hours or less.
Have an Attorney Support You During an Audit
If a worker you have hired files a complaint or a labor auditor is investigating whether a worker is misclassified as an independent contractor, it’s important that you speak with an experienced employment attorney as soon as possible.
Even unintentional misclassification can result in penalties of 1.5% of wages, 40% of the FICA taxes that were not withheld and 100% of the matching FICA taxes the employer should have paid.
Rather than stress and guess, get a LegalShield membership now. For a small monthly fee you can call your attorney for advice and they can even make calls and write letters to the auditor on your behalf. LegalShield makes it easy and affordable.
How a Legalshield Small Business Plan Works for Independent Contractor Agreements
All LegalShield plans come jam-packed with valuable benefits. When it comes to independent contractor agreements, the most common plan usage is in two areas.
CONSULTATION AND ADVICE
You can speak with an employment lawyer in your area to get legal advice about hiring independent contractors and to make sure you are following all applicable laws to maintain independent contractor status.
TEMPLATES AND DOCUMENT REVIEW
You can submit any documents up to 15 pages each and have your attorney provide feedback. Also, you can download an attorney drafted independent contractor agreement, fill it out and have your attorney make sure it’s correct.
You get the best of both worlds. You have the help of an attorney to make sure any independent contractor relationships are handled correctly AND you save a ton of money.