THE LAW. Many organizations don't think twice about using independent contractors. They're an attractive labor source because you don't have to shell out payroll taxes or benefits for them, nor are you typically liable for them under many federal employment laws.
But that relationship can come crashing down if the IRS or a disgruntled contractor ambushes you, claiming certain workers are truly "employees," not independent contractors.
So how do you make the right call? The IRS uses its infamous 20-factor test to differentiate employees from independent contractors.
The issue comes down to one word: control. The more control and supervision you exert over the workers' schedule and production, the more likely that the worker will be deemed a full-fledged "employee."
Basically, the law says your organization has the right to control the result of work done by independent contractors, not the means and methods o...(register to read more)
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