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May 23, 2024 · Learn how to distinguish between an independent contractor and an employee based on common law rules, behavioral, financial and type of relationship factors. Find out the tax obligations and consequences of misclassification for both parties.
Aug 2, 2022 · Learn how to distinguish between employees and independent contractors based on behavioral, financial and relationship factors. Find out the consequences of misclassification and the options for voluntary reclassification.
Jan 10, 2024 · The Department of Labor published a final rule to provide guidance on whether a worker is an employee or an independent contractor under the FLSA. The rule rescinds the 2021 Independent Contractor Rule and returns to the economic reality test with a multifactor analysis.
Mar 21, 2022 · Independent contractors vs. employees: The differences. Employers like to use independent contractors when they can because doing so allows them to avoid expenses associated with employees — taxes, training, promotions, overtime, benefits, unemployment insurance, workers’ compensation insurance, FMLA leave, 401K matches, and so on.
- Opportunity for profit or loss depending on managerial skill. This factor primarily looks at whether a worker can earn profits or suffer losses through their own independent effort and decision making.
- Investments by the worker and the employer. This factor primarily looks at whether the worker makes investments that are capital or entrepreneurial in nature.
- Degree of permanence of the work relationship. This factor primarily looks at the nature and length of the work relationship. Work that is sporadic or project-based with a fixed ending date (or regularly occurring fixed periods of work), where the worker may make a business decision to take on multiple different jobs indicates independent contractor status.
- Nature and degree of control. This factor primarily looks at the level of control the potential employer has over the performance of the work and the economic aspects of the working relationship.
Learn how to distinguish between an employee and an independent contractor based on common law principles, the Fair Labor Standards Act, and the economic realities test. Find out the tax implications and benefits of each status for employers and workers.
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Feb 22, 2024 · Learn how the IRS determines if a worker is an independent contractor or an employee for federal employment tax purposes. See the factors that indicate behavioral control, financial control, and relationship of the parties.
