Tax Time Tip: Employee or Independent Contractor

Whether you hire independent contractors or are one yourself, you must meet the labor law requirements to claim independent status. Various tests exist for determining employee vs. independent contractor status. The once common "20 Common Law Factors Test" of the IRS, has been replaced by a new category test. This test examines the worker employer relation to determine status. Learn the "Independent Contractor Determination Rules" before you file taxes or make staffing changes to your small business.