Employee vs. Independent Contractor: Ensure Proper Classification of Workers

English: United States Internal Revenue Servic...

(Photo credit: Wikipedia)

From Meyers, Harrison & Pia, LLC. —

A recent Forbes personal finance article “Independent Contractor Enforcement: There’s More Than The IRS To Fear” discusses a topic of relevance to today’s business world. The issue at hand is who is classified as an employee versus classification as an independent contractor. Recently, the United States Labor Department has undertaken investigations regarding workers who were incorrectly considered independent contractors, known as the United States Labor Department “Misclassification Initiative.” Several of these initiatives have resulted in substantial liability for employers, including a judgment of $1.3 million against a national directory assistance provider with workers it considered to be independent contractors. Further, the United States Labor Department levied a $101,000 judgment on a Virginia employer who had considered individuals working on a government-funded construction contract to be independent contractors. The logical question that ensues is what factors determine whether an individual is considered an employee or an independent contractor?” 

Read the full story at Employee vs. Independent Contractor: Ensure Proper Classification of Workers [page reomoved after publication]

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