Classify employees and independent contractors.Most workers fall into two categories, independent contractors A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. and common-law com·mon-law adj. 1. Of, relating to, or based on common law. 2. Of or relating to a common-law marriage. Adj. 1. employees. How do you know which term to use? The key is degree of control--the more control the business has over a worker, the more likely it is that the worker is an employee rather than an independent contractor. Incorrectly in·cor·rect adj. 1. Not correct; erroneous or wrong: an incorrect answer. 2. Defective; faulty: incorrect programming of the computer. 3. classifying a worker can subject businesses to penalties, but there may be relief for employers who want to correct worker classification errors. Find out more at www.irs.gov/newsroom/article/0,,id=158750,00.html. |
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