

The rules surrounding whether a worker is an employee or independent contractor are complex. But it’s important to get it right because when you misclassify an employee as an independent contractor, you open the door to significant legal and financial troubles.
First things first … what do we mean when we say “independent contractor,” and how is it different from being an employee?
An independent contractor is a worker who is responsible for delivering a certain result, and he or she decides how to achieve that result. That level of control is what distinguishes a contractor from an employee. Employees, on the other hand, are workers who do what you tell them, when you tell them and how you tell them to do it.
If you have any doubt about a worker’s status, it’s always best to err on the side of caution and treat the worker as an employee. For guidance on how to manage independent contractors without crossing the line, download this free e-guide from ComplyRight.
ComplyRight creates practical products and services to help small businesses complete essential HR and tax reporting tasks in an efficient and legally sound manner. From hiring to firing, to mandatory employee postings, to 1099 and W-2 processing, our solutions are guaranteed to be 100% compliant with federal and state (and in some cases, local) employment laws. Our direct brands include HRdirectapps.com (simple and smart online HR software), PosterTracker.com (complete range of ComplyRight posting solutions), efile4biz.com (online 1099, W-2 and ACA form processing), and HRdirect.com (leading provider of ComplyRight HR products).
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