Understand all of the tests related to independent contractor compliance


From ICon Professional Services’ Blog —

Many businesses rely on independent contractors for specific tasks. The main benefit is that it allows companies to deploy a flexible workforce made up of people with a significant degree of autonomy. The downside, of course, is that it is possible to accidentally misclassify workers who should be employees. That can lead to legal liability and fines.

One of the problems, as pointed out by an article in the National Law Review, is that there are numerous tests that are used to determine whether a worker is an employee or an independent contractor. These tests often vary from state to state and are adjusted from time to time by lawmakers and regulators. The test used by the Internal Revenue Service was adjusted relatively recently.

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