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HR Support on Independent Contractors
Editor's Note: Give up control to avoid taxes and other employment headaches.
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
Latest items in Independent Contractors
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Terms of Employment
The terms and conditions that govern the employment relationship are typically governed by federal and state employment laws, including antidiscrimination laws. This section helps HR professionals avoid discriminating on the basis of race, color, religion, sex, pregnancy, national origin, age, disability, genetic information and veteran status throughout the employment relationship.
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High-Tech/Software and Communications Resource Center for HR: Wage and Hour
XpertHR's High-Tech Resource Center for HR: Wage and Hour helps high-tech employers handle their most challenging employment issues by bringing relevant resources together in one place for easy access.
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Illinois Employee Classification Act of 2008 Poster
The Illinois Employee Classification Act of 2008 poster, mandated by the Illinois Department of Labor, is required for all construction contractors utilizing independent contractors.
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White House Looking to Increase Enforcement of FLSA and FMLA
President Obama also is seeking additional funding for investigations of independent contractor misclassifications and for a new integrated enforcement and case management system.
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Recruiting: New York
In-depth review of the spectrum of New York employment law requirements HR must follow with respect to recruiting.
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Workers' Compensation: Kansas
In-depth review of the spectrum of Kansas employment law requirements HR must follow with respect to workers' compensation.
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Transportation Resource Center for HR: Workers' Compensation
XpertHR's Transportation Resource Center for HR: Workers' Compensation helps transportation industry employers handle their most vexing employment issues by bringing relevant resources together in one place for easy access.
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Iowa Joins DOL's Independent Contractor Enforcement Posse
The Hawkeye State has partnered with 13 other states and the DOL to share information and coordinate enforcement efforts aimed at preventing the misclassification of employees as independent contractors.
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Supreme Court Adds Employment-Related Case to Schedule
The Supreme Court has added another employment-related case to its schedule in agreeing to hear a case involving a controversial Port of Los Angeles rule. Under the rule, the Port would require all trucking companies to hire their drivers as employees rather than independent contractors to better protect the Port's investment in clean trucks. At issue is whether federal law preempts the rule.
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Workers' Compensation: California
In-depth review of the spectrum of California employment law requirements HR must follow with respect to workers' compensation.
About this topic
HR guidance on legally classifying and managing independent contractors under federal tax and employment laws.
Independent Contractors: Key Items
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Independent Contractors
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How to Manage Contingent or Temporary Workers
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Does the FMLA cover independent contractors?
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Are independent contractors covered by workers' compensation?
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Does an employer have to report independent contractors as new hires?
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Treat Independent Contractors as Independent Contractors