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.