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

  • How to Hire an Independent Contractor

    Type:
    How To

    Hiring independent contractors can provide an employer with cost savings in salary and benefits and give staffing flexibility to address temporary projects or demands. When deciding to hire an independent contractor, an employer should follow the steps in this How To.

  • Independent Contractor Policy

    Type:
    Policies and Documents

    An employer that uses independent contractors should adopt written policies regarding the hiring and payment of independent contractors to limit the risk of misclassification.

  • Independent Contractor Agreement

    Type:
    Policies and Documents

    An employer can customize this agreement to detail the project, deadlines, payment arrangements and termination provisions of an independent contractor's work.

  • Independent Contractors

    Date:
    18 April 2014
    Type:
    Editor's Choice

    Employers that care more about an end result than how it is achieved can avoid certain taxes, legal liabilities and administrative challenges by hiring independent contractors instead of employees. The risks of incorrectly classifying a worker as an independent contractor instead of an employee, though, have never been higher.

  • New York Independent Contractor Law Amended: Employment Law Manual Updated

    Date:
    19 March 2014
    Type:
    Editor's Choice

    New York employers need to be aware that the New York State Commercial Goods Transportation Industry Fair Play Act's effective date has been extended to April 10 and its scope of coverage has been slightly expanded.

  • Illinois Employee Classification Act of 2008 Poster

    Type:
    Policies and Documents

    As mandated by the Illinois Department of Labor, all construction contractors hiring independent contractors must post the Illinois Employee Classification Act of 2008 Poster.

  • Date:
    17 January 2014
    Type:
    Legal Timetable

  • Content Added, Updated to Reflect New York Independent Contractor Law

    Date:
    17 January 2014
    Type:
    Editor's Choice

    The recent signing of the New York State Commercial Goods Transportation Industry Fair Play Act has resulted in an update to the Employment Law Manual and a new addition to the Legal Timetable.

  • Independent Contractors: New York

    Type:
    Employment Law Manual

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

  • New York Tightens Standards for Use of Independent Contractors as Commercial Delivery Drivers

    Date:
    15 January 2014
    Type:
    News

    Under the New York State Commercial Goods Transportation Industry Fair Play Act, drivers classified as independent contractors will need to satisfy either a variation of the ABC Test or an 11-factor test for determining whether they constitute a separate business entity.