If you are starting a business or operating one, assure that if you hire workers, that you comply with both State and Federal laws.
Arbitrarily deeming some workers employees and other independent contractors without knowing whether they actually fall into the scope of the official definitions of each, can be costly.
Amongst other things, employers are required to make withholdings and pay employer taxes on payroll paid to employees. There are also implications with employees, concerning health insurance plans and retirement plans, etc.
This is not the case with independent contractors. However, simply treating a person as independent contractor, does not mean that the person is actually an independent contractor. In fact, he/she could be an employee and you may not know.
It is important to understand the difference and categorize each person appropriately. “Control” over the person is one of the key issues to consider.
Misrepresentation of an employee as an independent contractor can result in significant consequences pertaining to workers compensation insurance compliance, IRS and local tax authority compliance, etc.
Reduce the risk of costly mistakes by contacting a Boston business lawyer or Maine business lawyer today and find out whether your “independent contractors” are independent contrators or employees.
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