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

How Do I Avoid Tax Mistakes When Hiring Contractors?

* From  Date: Monday, February 26 2007

Are you trying to avoid paying taxes and benefits by hiring independent contractors? If so, you may be setting yourself up for trouble with the IRS.

If you direct or control the specific tasks and the where and the how of the worker's activities, the IRS will likely consider that person

an employee, regardless of how you have classified the worker.


When Independent Contractors Become Employees
Interview with John Dolan, an attorney in Newport Beach, California.