Using independent contractors can save you a bundle in payroll taxes, health insurance costs, workers' compensation premiums and overtime pay. But the rules about who qualifies are complicated, and the IRS and state revenue agencies keep a close eye on businesses that hire independent contractors. Misclassifying a worker can result in serious financial penalties in a state or federal audit.
Now for the first time in decades, the IRS has made the rules about hiring independent contractors a lot simpler. New IRS rules make it easier for employers to prove that a worker is an independent contractor; they also allow employers that have misclassified workers to pay reduced assessments and penalties—or avoid them altogether.
Hiring Independent Contractors reflects these important IRS changes and shows employers how to:
- assess who qualifies as an independent contractor
- hire ICs without risking an audit
- retain ownership of intellectual property when using ICs
- handle an IRS audit
- take advantage of the IRS's ""Safe Harbor"" law
All independent contractor agreements are included on disk and as tear-outs.