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Employee or Contractor: What Small Business Owners Need to Know | Legal Ease

One of the trickiest questions for small business owners is determining whether someone they hire is an employee or an independent contractor. “Arriving at a wrong answer in the eyes of the IRS could cost your business thousands," said Beth Milito of the NFIB Small Business Legal Center. “Worker misclassification carries with it costly fines, back taxes and interest payments.” While there are several tests for determining whether someone is an employee or a contractor, Milito says a key consideration is who controls the manner in which the work is performed. The more the employer controls where, when and how the work

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