How to Determine If a Worker Is an Employee or a Contractor
Do you know whether your worker should be classified and paid as a contractor or an employee? Are you aware that there are strict rules that govern this and that there are penalties associated with misclassifying workers?
The March 2012 issue of Insights and Innovations, CompuPay’s monthly publication highlighting topics that impact the business community, provides a guide to employers for determining the proper classification of workers as one of four classifications:
- independent contractor
- statutory employee
- statutory nonemployee
The white paper outlines the common law rules used in the determination as well as how to get assistance from the IRS when classifying workers. Additionally, the IRS Voluntary Classification Settlement Program is explained and the steps employers need to follow to utilize the program are outlined.
Access the detailed article on the Insights and Innovations page of the CompuPay website.
The material contained on this page is for informational purposes only and is current as of the date of publication. CompuPay is not a legal, tax or financial adviser and makes no claims as such. For tax, financial or legal advice, please seek a professional.