From Employers Resource —
Ask Yourself Some Honest Questions to Prevent Independent Contractor Misclassification
However, the IRS does provide some guidance when determining how a worker should be classified. Some of the main questions to ask are:
How much instruction and training will you provide this individual?
Does the worker provide his own tools?
Is he or she free to obtain other employment while doing work for your business?
Is the individual’s job long term, or just a temporary project?
A list of great questions and explanations on determining whether a worker is an independent contractor or employee can be found using this link to the IRS website.
It is key to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination.
Read the full story at How to Prevent Independent Contractor Misclassification
- NY DOL focuses on misclassification of workers as independent contractors (nathansgibson.org)
- Tenn. Labor Department Expands Efforts To Uncover Misclassification of Workers as Independent Contractors (nathansgibson.org)
- Mislabeling construction workers as contractors draws federal scrutiny (nathansgibson.org)