Q. I am assistant HR director for a small company that uses independent contractors as well as full- and part-time employees. In my role, I must ensure that these workers are accurately classified as either employees or contractors, and that my company fully complies with federal and state tax and labor laws. What is out there to assist me in accurately classifying the workers performing services for our firm?
A. The IRS and Texas Workforce Commission utilize an 11-factor test to determine the employment relationship of a particular person or entity. The 11 factors are grouped into three main categories: behavioral control, financial control and the type of relationship between the parties.
Facts that show whether the business has a right to direct and control how the worker does the task for which the worker is hired include the type and degree of:
1. Instructions that the business gives to the worker. An...(register to read more)