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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 lawyer is an easy way to ensure your situation meets the requirements and you avoid penalties and back taxes.
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Have a Lawyer Resolve Lease Disputes
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 lawyer 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 lawyer for advice and they can even make calls and write letters to the auditor on your behalf. LegalShield makes it easy and affordable.