Contractors, freelancers can operate in gray area — the ‘1099 economy’

From the Pittsburgh Post-Gazette —  “The IRS and the Department of Labor have tried to tighten up the rules about who can be classified an independent contractor and who is an employee, entitled to benefits. The latest definition from the DOL states that having a worker sign an agreement stating he or she is an independent contractor isn’t sufficient, because the “reality of the working relationship — and not the label given to the relationship in an agreement — is determinative.” 

According to IRS rules, if a company has the right to control how the worker does his or her job, such as setting a schedule, and if the company controls business aspects of the worker’s job, such as providing tools and uniforms, then the worker should be considered an employee….”

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