| Your success as an employer depends on the contributions
of many people. As a company pursues its financial, product
and service goals, you may rely on the use of independent
contractors.
Within the US, a non-employee workforce requires special
attention. Legally, these workers are required to be treated
differently than regular employees. Yet, as a practical
matter, contractors and temporaries are often key members
of the team, valued and involved as the other workers
who are direct employees of the employer.
Many companies have increased their use of independent
contractors. This trend has caught the attention of the
IRS. The IRS has a legal definition of an independent
contractor, and if workers don't meet that definition,
they may be considered by law to be employees. At that
point, the IRS can fine an employer in addition to collecting
for back taxes and withholdings that should have been
paid. The IRS can require an employer to pay those fines
even if the contractors have paid all their taxes.
Additionally, employers need to be sure that they are
protected against loss, injury and or damages caused by
or related to their temporary help, so you want to make
sure that the appropriate insurances are carried by the
employer or independent contractor.
To help you understand your responsibilities in this
area, we have prepared a guide to clarify what the employer's
obligations are and to assist you in the management of
independent contractors.
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