What do you need to know when hiring an independent contractor?
Take extra care to ensure an independent contractor is not an employee according to their local laws as well. Some countries require obtaining a contractor license, which can help you avoid misclassification risks.
Are there any changes to independent contractor law?
The recent changes to independent contractor law affect only a handful of states (California, New Jersey, Massachusetts, Illinois.) But chances are they will impact independent contractor law in most, if not all states before long. What is independent Contractor Law?
Can a company cover the expenses of an independent contractor?
There is no bright line saying one can’t cover the expenses of an independent contractor, but doing so can suggest the worker is an employee. Classically, all such items are supposed to be factored into the price you are paying the independent contractor for a finished product.
Who are independent contractors in the United States?
People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors.
Take extra care to ensure an independent contractor is not an employee according to their local laws as well. Some countries require obtaining a contractor license, which can help you avoid misclassification risks.
What are the consequences of treating an employee as an independent contractor?
Consequences of Treating an Employee as an Independent Contractor If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker (the relief provisions, discussed below, will not apply). See Internal Revenue Code section 3509 for more information.
There is no bright line saying one can’t cover the expenses of an independent contractor, but doing so can suggest the worker is an employee. Classically, all such items are supposed to be factored into the price you are paying the independent contractor for a finished product.
Is it illegal to have employees and independent contractors?
Many businesses have some employees and some independent contractors, and there is nothing improper in so doing. However, it is inappropriate to have to have one worker selling shoes on an independent-contractor basis and another similarly situated worker doing the same thing as an employee.