A Summary: Independent Contractor Myths
Did you know one of our most downloaded whitepapers is also an easy-to-read blog series? If you would like to read the full whitepaper, Independent Contractor Myths vs. Realities is downloadable under the HR Essentials tab of our Resources page, along with several other HR compliance and employment law-focused whitepapers.
If you’d like a reminder to read these short blog posts, you can sign up to receive the email alert about once a week. Otherwise, we’ve listed out all of the blogs below for your convenience.
The 13 Independent Contractor Myths:
- A short IC project poses no misclassification risk
- If an IC has been engaged by other companies, it is safe to engage them as an independent contractor
- A signed independent contractor agreement substantiates the classification
- Consultants with their own corporations are automatically independent contractors
- A consultant with a business license and liability insurance poses no risk to the client company
- Contractors who telework or perform the work off-site are independent contractors
- Documenting an independent contractor’s project is a waste of time
- It is safe to follow established industry practice when classifying certain workers as independent contractors
- If one agency considers the worker an independent contractor, then all others will also
- A company issuing a 1099 tax form to the contractor automatically makes them an independent contractor
- Independent contractors are not entitled to any of the benefits and protections provided to people who meet the definition of an “employee”
- Government agencies hold everyone to be an employee because they want to capture the tax revenue and guarantee worker protections, therefore there is no such thing as a valid independent contractor
- There is one standard test in the U.S. to determine whether someone qualifies as an independent contractor
For basic information about independent contractors, check out a webinar that we hosted: Independent Contractor 101.
This presentation answers:
- What is an independent contractor?
- Why engage an independent contractor?
- What is employee misclassification?
Don’t forget: The DOL announced that the independent contractor classification criteria is changing next month! You can use Navigator IC to generate a risk report of classifying a specific worker as an independent contractor. Interested in learning more about this tool? Sign up for a demo today.
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