Recently I attended the first of a three part free breakfast series focused on providing women entrepreneurs with information on starting and running their own business. One of the topics discussed by the attorney presenting atthis session was classifying employees and how to tell if an independent contractor is really an employee. This is what I learned:
- An independent Contractor has what is called Freedom Of Control. This means that you are not able to micro manage this person’s work day. You can give them the scope of services to be performed but then you can not turn around and tell them when to start and end their work day, impose a dress code on them or hold them to your company’s standard.
- An Independent Contractor should not go out of business because you went out of business. An Independent Contractor should be doing the same kind of work that they do for you for other companies. If you are telling your Independent Contractors that they cannot do work for other companies then you may be treating them as an employee.
- An Independent Contractor should not perform essential functions of your company. If they are performing essential functions they may be considered an employee instead of an Independent Contractor.
For More information about how the IRS classifies employees versus Independent Contractors, please click on this link.
I am not an attorney and I am not providing legal advise.If anything you read causes you concern as an entrepreneur or small business, please seek legal counsel. Kelly Ross Goup was the presenter at this awesome and informative workshop. You can contact her via her Facebook Page.
She also talked about Trade Secrets.Read complete article on MomsNCharge.com