Independent Contractor versus Employee
Several weeks ago I wrote a post regarding the tax implications of paying your “workers” as employees or independant contractors. In that article, I spoke briefly about the factors the IRS considers in determining whether your worker is an employee or an independent contractor. Unfortunately, the IRS does’t give much weight to how you label your workers.
I am beginning a series of posts describing and defining the seven factors considered by the IRS in determining how to label a worker. Those seven factors are:
- Control
- Capital
- Opportunity
- Right to Discharge/Fire
- Integral Nature
- Permanence
- Intent
I will update this post with links to the further discussion of each factor, so you can use this post as your menu for further research after all of the articles defining the employer/employee/independant contractor relationships are posted.