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Independent Contractors Fair Labor Standards Act (FLSA) Income Taxes

Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent... more +
Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent contractor is not always an easy determination. However, due to differences in tax and liability treatment, misclassifying an employee as an independent contractor can have serious consequences. Autonomy is the defining feature of independent contractor arrangements. Independent contractors control the manner and method of how work is performed while payers control the desired result. Control over schedule and number of hours worked, ownership of equipment or tools, permanency of relationship, and acceptance of jobs from multiple entities are all possible factors in determining whether a worker is an employee or independent contractor.   less -
Burr & Forman

IRS Misclassifications and Costly Penalties: Independent Contractor or Employee?

Burr & Forman on

Failing to properly classify an individual as an independent contractor can result in expensive penalties to the employer – imposed by both the United States Department of Labor and the Internal Revenue Service. As it...more

Buchalter

Combatting Employee Misclassification under the FLSA

Buchalter on

Correctly classifying a worker as an employee or an independent contractor is critical. Misclassification of employees as independent contractors has been occurring in an increasing number of workplaces, and the Department of...more

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