Employee or Independent Contractor?

Employee or Independent Contractor? How to Properly Classify Your Workers and Ensure Compliance

1099 forms

From Isperity, another on the year’s most shared stories about independent contractors.  Denise Kingland wrote:

5 red flags to avoid

The following situations may raise suspicions about how you have classified your workers and could lead to an IRS audit.

  • Reclassifying employees as independent contractors, especially issuing the same worker both a W-2 and a 1099-MISC
  • Laying off employees and making them independent contractors so that they can finish up work that needs to be done
  • Providing most of the supplies that workers need to perform their duties e.g., laptops, phones, office supplies and classifying them as independent contractors
  • Being the only client or source of income for an independent contractor
  • Making regular, indefinite payments to an independent contractor over multiple years…

Read the full story at Employee or Independent Contractor? How to Properly Classify Your Workers and Ensure Compliance.

Back to Top