One of the things that have been on the IRS’ radar in recent years is employee mis-classification. Companies are tempted to classify workers as contract labor rather than employees because it saves them money on taxes. Others just simply don’t know the difference and don’t properly add workers to their payroll. The IRS has provided resources to determine if a worker is an independent contractor or an employee. Here are a couple links:
- Guidance on the IRS website walks you through the process of determining the classification of a worker
- IRS Form SS-8
- This form permits you to request a determination of the classification of a worker.