Employee or Independent Contractor?

February 24, 2010 at 6:04 pm Leave a comment

 It has always been the HR practitioner’s responsibility to advise management on the proper classification of a position as either an employee of the company or an independent contractor. Governments (both state and federal) are more proactive on this issue now, than in recent memory, primarily because they are seeking additional sources of revenues for shrinking public budgets.  The distinction between an employee and independent contractor hinges on several factors, but primarily on how much control the business exercises over a worker’s activities.  A useful description of the employee/contractor distinction can be found at the IRS website at: http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

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Entry filed under: Human Resources (HR). Tags: , .

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