Small Business Resources, Business Advice and Forms from AllBusiness.com

How Do I Correctly Classify My Employees?

* From  Date: Wednesday, February 21 2007

Too often small business owners hire independent contractors and then treat them like regular employees. This can result in stiff IRS penalties. Make sure you classify all your workers appropriately.

The IRSwill examine the degree of control your company has over that worker. If you have the right to direct or control specific tasks and where these tasks are completed, the IRS will likely consider that person an employee, regardless of the title you´ve given them.


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