Business owners must learn how to work with employees and independent contractors. In this podcast I talk about the IRS test for employee v. independent contractor. I’ll discuss what is the difference between a contract employee v. at-will (hiring/firing, offering and changing benefits). I briefly discuss discrimination and wage claim liability for both the employer and individual managers.
Working with Independent Contractors
It’s not so easy to determine if someone who does work for your business is an employee or an independent contractor. When working with employees and independent contractors, there are ways to protect your business but they have to start from the time the relationship begins with the laborer. For smaller businesses, it can be difficult to convert an “employee” into an independent contractor once the relationship has begun as an employee; but not the other way around. The IRS will default to determining a laborer an employee, because then your business will be liable for payroll taxes. A mistaken or deemed “employee” could cost your business back taxes and heavy penalties, and also liability because it failed to obtain the right workers compensation or employment liability insurance.
Best bet for your business is to consult with me because I have experience working with employment and labor issues, but also with a C.P.A. and a commercial insurance agent. Listen here:
Thanks to Matt Mittan and BizRadio AM 1350 in Asheville for letting me present this series.
Contact me if you have any questions on any business transaction. In western North Carolina, Asheville, Waynesville, Hendersonville at (312) 671-6453.
Email me at: email@example.com.