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

1099 formsFrom 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.

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