Independent Contractor or Employee?
 

How a worker should be classified is a common question fielded by Affinity HR Group consultants. The DOL and IRS operate under two varying sets of standards and many states also have their own determination of classifications for workers. All of this makes for a very murky understanding for employers.

While several factors must be met for proper classification, the more a company has control over when and how a worker completes assigned work, the more likely that person will be an “employee”.  If a worker has the opportunity to experience profit or loss, provides their own facilities and/or equipment, exercises a high level of skill while working,  and controls how and when they do the work, they MAY be an independent contractor.

The misclassification of employees and workers can create wage-and-hour, unemployment, workers’ compensation, and tax liability for employers so it is important to review the regulations carefully and consider each employee individually.