Q: | I have heard that I can save on payroll taxes by converting my employees to independent contractors (I/C). Is this true? |
A: |
Not exactly. The IRS has very specific and strict criteria for the classification of an I/C; in a nutshell, “The more control a company exercises over how, when, where, and by whom work is performed, the more likely the workers are employees, not independent contractors.” Employers who erroneously classify employees as I/C are subject to fines and unpaid payroll taxes. Read more by visiting our blog: Avoid the Payroll Issues That Can Jeopardize Your Business |