Before you hire independent contractors, consult with a qualified business attorney to be sure you will comply with IRS regulations. Your attorney can help you draft a written contract that details the duties of the contractor and keeps you on the right side of the law.
The IRS and the Department of Labor are cracking down on businesses that use contractors but treat them like real employees – or, as the IRS calls them, “common-law employees.” Before you misclassify that contractor, ask yourself these 5 questions:
Do you control the work?
If you direct how and where and at what time someone works for you, then the government says you have an employee, not a contractor.