Overview: 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
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.
This How To details the steps a prudent employer should take when managing contingent or temporary workers.
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.
In-depth review of the spectrum of Montana employment law requirements HR must follow with respect to workers' compensation.
In-depth review of the spectrum of Arkansas employment law requirements HR must follow with respect to independent contractors.
In-depth review of the spectrum of Alaska employment law requirements HR must follow with respect to independent contractors.
The US Government Accountability Office (GAO) has issued a report on the contingent workforce, which examines the state of part-time workers, those employed by temporary staffing agencies and independent contractors in the workforce.
According to new statistics, a greater proportion of the US Department of Labor's enforcement actions are being targeted at industries that commonly use franchising, independent contractors, subcontracting and third-party intermediaries such as temporary employment agencies or labor brokers.
The Independent Contractors: New Jersey section of the Employment Law Manual has been updated to reflect the New Jersey Supreme Court's ruling that the ABC Test must be used to determine whether a worker is an employee or an independent contractor under the state's overtime and wage payment laws.
HR guidance on legally classifying and managing independent contractors under federal tax and employment laws.