The IRS has been making it’s rounds to small businesses, checking in to see that they have their workers classified correctly. On average, small businesses classify 10-60% of their workers incorrectly. Why? Independent contractors have less paperwork, less benefits, and you can hire them just when you need them. They also come with their own set of rules for perks to an independent contractor, such as setting their own schedules. With the health-care penalty going into effect next year, many employers are trying to avoid the penalty threshold by using a mix of employees and independent contractors. To avoid penalties, make sure you classify your workers correctly!
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