Properly Classify Your Workers in 2017

laurieBy: Laurie Hansen, CPA, Tax Manager

With all the changes that occur within an organization during the course of a year, it’s important to take a step back and review policies and procedures at the beginning of the year. For example, it’s critical that an organization classify its workers properly. Are your workers employees, or independent contractors?  Let’s take a look at the rules to make sure workers are classified in accordance with IRS guidelines for the coming year.

In general, a person will qualify as an independent contractor if the employer has the right to control or direct the result of the work, but not how or what will be done to achieve the end result. Conversely, in an employer-employee relationship, the employer has the right to direct and control the work done by the employee. Visit our website here for factors that are important in determining worker classification.

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