From the The Washington Post — “Perhaps the most relevant question in the workplace today — and one that’s becoming harder to answer — is “whom do you work for”? Increasingly, employers would like for the answer to that question to be “yourself”: You take on the responsibilities of being the sole proprietor of your own independent business and simply enter into contracts to provide companies with goods or services.
That’s true for people who connect with customers on platforms such as Taskrabbit and Uber, drivers for many long-haul trucking companies, and freelancers of all kinds. And it’s a good deal for companies: They don’t have to pay social security or payroll taxes, or worry about unemployment insurance and worker’s compensation, like they do for regular employees.
But not just anyone can be classified as an independent contractor. While rules differ across states — some require the “employer” to prove its contractors are truly independent, for example, and others don’t — the Internal Revenue Service has guidelines that should send up red flags if you’re being treated like an independent contractor when you shouldn’t be. The government’s final determination will be based on a confluence of factors, but ultimately it all comes down to what degree of control a company exerts over the people who work for it….”
Read the full story at Are you actually an independent contractor? A rough diagnostic
- Employee vs. Independent Contractor: What Employers Need to Know (legalzoom.com)
- Catherine Rampell: Who’s your boss? – The State Journal-Register (sj-r.com)
- IRS needs to embrace freelance economy (cnbc.com)