Employee or Independent Contractor and Why it Matters

Knowing these 20 Factors Used by the IRS to determine if a worker is truly an Independent Contractor can save you thousands or even tens of thousands of dollars in back-taxes, penalties and interest. For every worker the IRS finds you misclassified as an Independent Contractor, they will reclassify the worker as an employee.  When that occurs you become liable for back-taxes owed for each employee they reclassify, plus any interest and penalties levied.

To assist and help you avoid owing payroll back-taxes, penalties and interest we put together this guide that outlines the 20 Factors Used by the IRS to determine worker classification.