HR Support on Independent Contractors

Editor's Note: Give up control to avoid taxes and other employment headaches.

Michael CardmanOverview: Having independent contractors offer benefits and risks. The benefits include avoiding certain taxes, legal liabilities and administrative challenges.

However, the risks can be great. Before filling a position with an independent contractor, it is essential to carefully consider the myriad factors that go into proper employee classification a worker as an independent contractor. An independent contractor should qualify not only under the tax code, but also several other state and federal employment laws that may come into play. Inaccurately classifying someone as an independent contractor can set an employer up for costly enforcement actions. 

Trends: Government enforcement of independent contractor misclassification is stricter than ever, as the Internal Revenue Service, the U.S. Department of Labor and state agencies cooperate to enforce the laws.

Author: Michael Cardman, Legal Editor

Latest items in Independent Contractors

  • Uber Drivers Gain Right to Unionize With First-of-Its Kind Seattle Law

    Date:
    December 17, 2015
    Type:
    News

    Seattle has become the first US city to allow drivers for Uber, Lyft and other ride-hailing company apps to unionize. The Seattle City Council voted unanimously to enact this groundbreaking measure. But Uber may challenge the ordinance in court, so this is likely not the last word on the issue.

  • Independent Contractors: Texas

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Texas employment law requirements HR must follow with respect to independent contractors.

  • Independent Contractors: Federal

    Type:
    Employment Law Manual

    This section helps HR professionals determine whether a worker is an employee or independent contractor under federal laws, manage independent contractors, and limit liability when reclassifying independent contractors as employees.

  • How to Manage Contingent or Temporary Workers

    Type:
    How To

    This How To details the steps a prudent employer should take when managing contingent or temporary workers.

  • Most Workers Are Employees, Not Independent Contractors, Says DOL

    Date:
    July 15, 2015
    Type:
    News

    A new administrator's interpretation about independent contractors from the US Department of Labor does not appear to break any significant new ground, but offers examples and citations to case law.

  • Workers' Compensation: Montana

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Montana employment law requirements HR must follow with respect to workers' compensation.

  • Independent Contractors: Arkansas

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Arkansas employment law requirements HR must follow with respect to independent contractors.

  • Independent Contractors: Florida

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Florida employment law requirements HR must follow with respect to independent contractors.

  • Independent Contractors: Georgia

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Georgia employment law requirements HR must follow with respect to independent contractors.

  • Independent Contractors: Idaho

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Idaho employment law requirements HR must follow with respect to independent contractors.