The Importance Of Classifying And Distinguishing Between Independent Contractors And Employees

1826 Words Feb 9th, 2015 8 Pages
Briggs, Latisha J.
Week #1 Paper
February 7, 2015

The Importance of Classifying and Distinguishing Between Independent Contractors and Employee’s
Briggs, Latisha J.
National University

Abstract Through this paper we will explore the importance of distinguishings classifications between independent contractors and employees. We will examine identifying established relationship between employers and workers while covering assigned roles of employees and independent contractors. We will briefly discuss enacted laws and recommended practices to avoid misclassification penalties and consequences. Lastly, we will explore vital factors that should be considered while classifying workers.

The Importance of Distinguishing Classification Between Independent Contractors and Employees Determining the classification between an independent contractor and an employee proves to be rather complex, yet vital, regarding tax issues. Therefore, assigning correct classification is critical to both employer and workers that carry out the labor, especially pertaining to benefits and tax payment obligations. Organizations that classify their workers as employees assume financial responsibility for them. Hartman asserts this by stating that, “the distinction, however, is significant for tax law compliance and categorization, for benefit plans, for cost reduction plans, and for discrimination claims” (Bennett-Alexander, Hartman, 2012). Specifically, the employer’s…
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