Businesses and Independent Contractors

The IRS website has a page titled Employee vs. Independent Contractor – Ten Tips for Business Owners. The difference between an employee and an independent contactor is significant. Therefore it behooves business owners to know what information and what documents should be obtained from those treated as independent contractors. Businesses also have an obligation to supply tax documents and should know what these documents are as well.

The IRS has criteria by which it assesses the actual relationship between workers and businesses. Behavioral Control, Financial Control, and the Type of Relationship are concepts considered by the IRS. Direction and control of behavior and finances as well as the perception of the nature of the relationship are relevant considerations. More details are at the lnked article.