Too often, employers attempt to reduce payroll costs (by avoiding payroll withholdings and contributions required for employees) by converting existing employees to independent contractor status or by having contractors perform work traditionally performed by employees. Such cost-reduction efforts can be costly in the long run, because erroneously characterizing a worker as an independent contractor can have serious economic consequences for employers.
Are Your Workers Employees or Independent Contractors?
Although all definitions agree an "employee" is someone who performs services for wages, it is difficult to distinguish an employee from other workers who provide services for money. One way is to look at the relationship between the worker and the organization.
