Ten Tips From The IRS On Employees Verses Independent Contractors

Employees and independent contractors are treated differently under the tax laws.  As a result, employers sometimes prefer to be hiring one rather than the other.  However, the test as to whether a given hire is an employee or an independent contractor is an objective one — an employer who thinks they are hiring an independent contractor may well find out down the line that the hire is actually an employee, thus subjecting the employer to potential tax bills and penalties.  To help employers determine whether a given hire is an employee or an independent contractor, the IRS has recently issued ten tips for guidance.  A more in-depth examination is here.