The IRS introduced a list of the top ten things every business owner should know about hiring people as independent contractors versus hiring them as employees.
The list highlights the characteristics the IRS uses to determine the relationship between businesses and workers, as well as how to properly classify workers, avoiding higher tax bills and penalties, and where to find additional resources.
For small-business owners, correctly identifying employees and independent contractors impacts the amount of tax paid, the amount of tax withheld from paychecks and additional business costs. The full list and additional guidance can be found at www.irs.gov.