The law firm of Baker, Donelson, Bearman, Caldwell & Berkowitz, PC. has an informative article that all employers should read. It is called “20 Ways Your Independent Contractor Might Be An Employee.” The IRS is conducting audits to find employers that have improperly characterized employees of independent contractors to avoid paying payroll taxes. The article says, “any worker classification analysis should begin with these two threshold questions:
- Does the hiring company pay its regular employees to perform essentially the same duties as the subject worker who is treated as an independent contractor?
- Has that worker previously been paid by the company as an employee to perform essentially the same task?”