IRS Focus: Worker Classification
Sep 24,2014
Worker classification – categorizing a worker as either an employee or independent contractor – varies from organization to organization and can be confusing. The IRS has begun to focus on classification of workers by an organization, conducting employment tax audits and compiling data about employers’ compliance with IRS rules involving employee versus independent contractor reporting.While guidelines are available from the IRS to assist in making these, the following should provide some helpful information.Employee vs. Independent ContractorA worker is considered an employee if you (as the employer) have the right to control what will be done and how it will be done. If you have the right to control or direct only the result of the work and the worker determines the means and methods of accomplishing the desired result, then that worker is more likely classified as an independent contractor (IC). Classification CriteriaRegardless of the label assigned to a worker, several facts...

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