More Independent Contractor and Employee Scenarios
Independent contractors have several differences in the way that they should conduct business with an employer, as outlined by the IRS. The difference between an independent contractor and an employee can be confusing for some employers.
More Differences between an Employee and Contractor
Knowing the difference between an employee and an independent contractor is critical for both tax and legal purposes. If an independent contractor is misclassified as an employee the consequences can be costly.
Independent Contractor and Employee Scenarios
The IRS uses a 20 factor common-law test to determine whether a worker is an independent contractor or an employee, and offers Form SS-8 for employers or workers who need assistance with this determination.
How do LLCs use 1099 Forms?
ependent contractors are commonly hired by LLCs due to long term cost savings and less oversight required.
Can a Company Have All 1099 Workers?
Independent contracting has increased in popularity lately due to the potential flexibility and freedom it provides both the employers and the contractor.
