Misclassifying employees as independent contractors creates significant legal risk. Understanding the distinction helps you structure relationships correctly.
Key Takeaways
- IRS uses multiple factors, not just a contract
- Control is the key consideration
- State laws may differ from federal
- Misclassification has serious penalties
Factor Analysis
- Behavioral control: How work is performed
- Financial control: Business aspects of work
- Relationship type: Written contracts, benefits
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