IRS warns about independent contractor errors — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

IRS warns about independent contractor errors

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in Compensation and Benefits,Human Resources

The IRS issued a fact sheet this summer to remind employers to correctly classify workers as either independent contractors or employees. (IRS FS-2006-21) The main factor: control.

The more control you have over the "when, where and how" that workers perform their jobs, the more likely that they'll be common-law employees for which you must withhold and pay federal taxes. Misclassification can lead to big-time back taxes and penalties ...

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