Whether you are looking to hire talent for your business from a creative agency such as Wunderland or searching for a new job, it is important to understand the differences between employee and independent contractor classifications. From tax ramifications to business or worker responsibilities, this one label can make a huge difference. These tips and criteria will help you to ensure you are using the right classification to achieve maximum benefit for your business or employment efforts and avoid the pitfalls of improper classification.
Independent Contractor or Employee?
When it comes to choosing the proper classification, there are many things to consider. The US Department of Labor and Supreme Court agree that classification is not possible using a specific list of criteria. However, by analyzing worker involvement and the employer-employee relationship, a few generalizations can help to determine the proper choice.
Worker Control and Supervision: In general, independent contractors provide a service while controlling many of the terms of when and how services are rendered. Employees are generally provided a schedule and supervised within the company while independent contractors are not.
Worker Investment: In most cases, employees are provided with facilities, equipment and training by their employers. While some of these items may... Read more