There can sometimes be confusion between whether to classify a new worker as an employee or an independent contractor. Since the IRS and the courts scrutinize and assess hefty fines for misclassifying workers, it is important to ask yourself some basic questions:
- Do you control the way the work is done (including hours, location, rate of pay)?
- Do you offer benefits to anyone in a similar position?
- Do you furnish the worker with a workspace or any needed tools?
- Is this person in a managerial or executive role with your company?
- Are there others with similar duties at the company classified as employees?
If the answer to any of these is yes, then the worker is likely an employee; not an independent contractor. If you need help classifying your workers, please contact Nextep's HR Department at 888-811-5150 or email@example.com.