From The Late Report —
while some employers may be tempted to label temporary workers as “independent contractors” instead of “employees” in order to avoid paying employee benefits and requisite withholding of federal, state and local employment taxes, labeling a true employee as an “independent contractor” inappropriately could lead to severe penalties and fines from both the IRS and the Department of Labor, Blandford said.
Classify workers appropriately, or else
In fact, both the IRS and DOL have stringent, very specific guidelines as to what type of worker may aptly be defined as an “independent contractor,” depending on the types of work being done, who maintains control of the pay rate and other supervisory decisions, etc. Legally speaking, these distinctions are crucial and must be applied appropriately, said attorney Shannon Hamilton, employment service group leader at Stites & Harbison PLLC in Lexington.
Read the full story at The rise of the temporary worker.
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