They are certain factors that go into determining whether one is an independent contractor or employee, and it all depends on the level of control and independence within the employment relationship. You are not an independent contractor if you perform services that can be controlled by an employer. Some questions to consider in determining whether one is an independent contractor are as follows: 1) Does the company control or have the right to control what and how the worker does their job? 2) Are the business aspects of the worker’s job controlled by the company? 3) Are there written contracts or employee type benefits? 4) Is this job the worker’s sole source of income and will the work relationship continue?

Which

Why is employment status important for you as an employer? A worker’s employment status affects an employer’s tax liability. When a worker is an employee, employers must pay state and federal unemployment tax, social security tax and workers compensation/disability premiums. However, when a worker is an independent contractor, the hiring party is not required to make any of these payments. Should employers incorrectly define a worker as an independent contractor, they may find themselves liable for past taxes including income taxes, FICA, federal unemployment taxes, workers compensation insurance, interest and penalties.

Don’t forget to consider these important factors next time you are hiring.

Related Posts

Continue Reading

Business

Are You Properly Protecting Your Services Or Products

If you have a product, service, website, or mobile app which you are marketing, protecting your rights to your mark...

Read More >>
Business

Ad The Price Of Deception

Are you a victim? Have you ever been sitting in front of the television or computer, or reading a magazine,...

Read More >>
Business

Two Ways To Raise Money For Your Business You May Not have Considered

When starting a business, among the most common methods that are thought of to raise money for the business are...

Read More >>
Assistance

How Can We Help?

Contact Us