Wednesday, December 5, 2007

Independent Contractor or Employee?

Some employers have furloughed their employees, only to hire them back as "independent contractors" to avoid governmental obligations that an employee requires, such as matching Social Security payments. Can they do that? Well, "it depends."

The IRS has a PDF document here that describes the definitions of an employee and an independent contractor. (Saying they are independent contractors does not necessarily make them so.)

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