A small business owner has decided to open an on call event management and staffing company and has decided to hire some temps to do the work. But she’s not sure whether these employees should be classified as contractors or employees.
She’s wise to get it right from the get go. Classifying staff incorrectly can cost a small business owner dearly down the road if it’s done wrong.
The IRS provides a guide for the determination of contractor vs. employee. The decision is mostly based on degree of control and indepence when completing the work. Take a look at this interview with a CPA to help make the proper determination.