IRS Fact Sheet on Proper Worker Classification
The Internal Revenue Service has issued a new Fact Sheet regarding classifying employees properly. According to the Fact Sheet:
"The rash of natural disasters that have hit the United States in the last several months have caused many businesses to hire additional workers to help them meet increased demand for their goods or services. These businesses must make sure they treat their workers properly to make sure everyone can meet their tax obligations.
Most workers fall into two categories: Independent contractors or Common-law employeesThe main factor a business must use in determining how to classify its workers is the degree of control the business has over its worker. The more control the business has over a worker; the more likely it is that the worker is an employee rather than an independent contractor."
The Fact Sheet also provides links to other available detailed information on this subject from the IRS.
It's amazing to see how many organizations are still confused about this issue. I can't tell you how many times, I hear people refer to people that work for them as (my pet peeve!) "1099 Employees."
Thanks to Benefitsblog for bringing this to our attention.