As a refresher when determining whether or not you have properly classified someone as an independent contractor, keep these things in mind:
- The extent of control the employer may exercise over the details of the work
- Whether the worker is engaged in a distinct occupation or business
- The kind of occupation, related to whether the work is usually done under the direction of the employer or by a specialist without supervision
- The skill required in the particular occupation
- Who supplies the instrumentalities, tools, and the place of work
- The length of time for which the worker is employed
- The method of payment, whether by time or by the job
- Whether the work is part of the regular business of the worker
- Whether the parties believe they are in an employer-employee relationship
- Whether the employer and the worker perform the same type of work
Misclassification is becoming a major focus by many states, along with the IRS, which monitors it at the national level.
The money a company may save in payroll taxes and employee-offered benefits pales in comparison to the fines and other punitive damages they will need to deal with if improperly classifying someone as an independent contractor.
Marzano HR Consulting will put the worker through either the ABC or common law test to provide guidance on poper classification.