L&I guide helps identify & define 'independent contractors': clarification could prevent costly mistakes.
If the state Department of Labor and Industries audited your business today, would the auditor find you should have paid workers' comp on your independent contractors? L&I auditors often find this mistake, and the results can be expensive.
Many business owners--and even their bookkeepers--believe that anyone who passes the IRS's independent contractor test also passes the independent contractor test in state law. However, they are not the same.
L&I has just released an updated independent contractor guide to help everyone better understand Washington's six-point test (seven points for construction contractors).
The new booklet:
* Takes you step-by-step through the independent contractor test in the same way L&I auditors approach it.
* Provides helpful examples of when a person will and won't pass the test.
* Tells you the types of documentation you'll need as evidence that your independent contractor meets the test.
You may access a copy of this new booklet from L&I's website, or log onto the "Members Only" area of the BNCW website.