Dear Colleague,

Using independent contractors can be a huge advantage to companies, saving them money and affording their employees flexibility. But many businesses don’t realize how much trouble those hires can get them into with the IRS. You may think you’re saving money, but using outside contractors may actually cost you much more than you imagined.

According to the IRS, 80% of workers currently classified as contractors are actually employees. That means they’re missing out on benefits they can sue to receive. Microsoft had to pay $96.9 million to independent contractors, and the IRS is enthusiastic about auditing employees and receiving unpaid payroll taxes and penalties.

Make sure your business is protected and your contractors are not misclassified. Using Independent Contractors will show you how.

It’s your responsibility to make sure your employees are taken care of – but it’s also up to you to protect your organization from legal risks. Make sure you’re using independent contractors the way you should be, or you could pay a hefty price.

Using Independent Contractors provides you with everything you need to know in order to comply with IRS requirements. You’ll find out:

• The “secret” way you can avoid paying back taxes, even if the IRS reclassifies all your workers
• The difference between an audit and an IRS compliance check – and how to pass both
• How to transfer the burden of proof in determining contractor classification
• How to maintain control of your contractors without raising red flags
• Three simple steps to avoiding messy lawsuits altogether
• Why you shouldn’t pay taxes up front in a dispute
• How the U.S. Tax Court can help you save money and time
• Why you need to think twice before you fill out Form SS-8
• And much more!

The IRS has changed its standards for determining whether a worker is an employee or a contractor. The agency now follows 10 set factors – down from 20 – to decide which category a worker belongs in. If you’re facing an IRS audit, you need to be able to explain why you categorize your workers the way you do.

In Using Independent Contractors you’ll find:

• The IRS’ 10-question “test” to establish worker classification
• A sample contract to make freelance relationships stick
• Guidelines for 22 states with contracting rules stricter than the IRS’
• A list of errors commonly made on 1099s

Using Independent Contractors prepares you for any scenario the IRS might challenge. You’ll know which workers are contractors, which aren’t and how to protect yourself from any backlash you might face. You can avoid putting your business at risk and save yourself time and money.

Table of Contents
Executive Summary
     Beware Agents Bearing Compliance Checks
     Out of Harm’s Way
     A Tricky Balancing Act
     Courting Disaster
You and the IRS
     Risky Business?
     On the Plus Side
     A Fuzzy Definition
     The IRS’ 20-Factor Test
     20-Factor Test Revised
     No Legislative Relief Yet
     Quiz Yourself on Some Common Scenarios
     Watch State Regulations
     The IRS’ New Attitude
        Section 530 Relief
        Form SS-8: Inviting a Ruling
     The IRS on Patrol
        Compliance Check or Audit?
     Form 1099: Handle With Care
     Congress Hands You a New Weapon

An Ounce of Prevention
     Don’t Be a Control Freak
     Liability Insurance
     Contracts: Your Most Important Protection
     Sample Contractor’s Agreement

Getting the Most From Your Independent Contractors
     Establish a Talent Pool
     How to Negotiate a Price
     Managerial Challenges
     Protect Confidential Information
     Don’t Overlook Your Staffers’ Morale
     Who Pays When a Contractor Fails?

Recent Court Rulings
     Circuits of the U.S. Court of Appeals
     Retaliation
     Worker Classification
     Reclassification
     Joint-Employer Liability

Hiring independent contractors can be a headache – but it doesn’t have to be. Know your rights and responsibilities. Protecting yourself from the risks of hiring independent contractors doesn’t take much, and you’ll be glad you did.

Sincerely,

Phillip A. Ash
Publisher

P.S. Remember, there’s absolutely no risk. If you don’t see how you’ll be safe from the perils involved in hiring independent contractors, we’ll refund your entire purchase price – no questions asked – and you’ll have no further obligation.

P.P.S. There’s no reason you shouldn’t be able to hire independent contracts and rest assured that you’ve covered all your bases. With Using Independent Contractors, you’ll know you’re protecting your business. Get your copy now!