Tax Tip – Worker Classification

Posted on March 13th, by jcsmith in Displayed Articles, Tax, Tips, Written Articles. Comments Off on Tax Tip – Worker Classification
Tax Tip – Worker Classification

The IRS is always on the lookout for misclassification of workers as independent contractors rather than employees. If the workers are independent contractors, the company avoids paying employment taxes. But you must treat workers as employees rather than independent contractors if you exercise control over how, when, and where they perform their duties. Important: Treat all workers doing the same job in the same manner, as either employees or independent contractors. If you treat some as employees and others as independent contractors, the IRS can say they’re all employees and assess employment taxes.



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