Some employers unknowingly misclassify some of their employees as independent contractors.

In doing so, they risk suffering severe consequences, including liability for misclassified employees’ back wages and overtime compensation as well as all applicable taxes. They may also have to pay liquidated damages, payroll tax penalties and penalties for wage-and-hour and immigration violations. They may even face criminal charges.

Avoid the consequences of misclassifying workers by understanding what constitutes an independent contractor. Be forewarned: This involves a fact-intensive analysis, and there’s no simple test or standard under the law that fits every situation and provides an easy classification answer.

By becoming familiar with the following tests, you minimize the chances of misclassifying an employee. Once you are familiar with the tests, consult your attorney to make sure you have applied them correctly....(register to read more)

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