The War Of Independents
The IRS takes aim at independent contractors. Are you safe?
Think you're an independent contractor because you're homebased? Think again. Telling an independent contractor from an employee is about as easy as keeping identical twins straight. And if you're wrong, you may have broken dozens of laws and be forced to pay large fines.
Many companies love independent contractors. By hiring freelancers, businesses avoid salaries, benefits, labor laws, workers' compensation premiums, payroll and unemployment taxes, having to supply office space and equipment, and responsibility for most worker negligence. On the flip side, the independent contractor is typically glad to trade job security for the freedom of being his or her own boss. Generally, independent contractors make 20 percent to 40 percent more than they would as employees. And because they're not subject to withholding, they keep more of their money longer. At tax time, they get to take business-related deductions.
Continue reading this article - and everything on Entrepreneur!
Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.
Get 3 months free with code zendesk
Presented by Zendesk
Entrepreneur Editors' Picks
-
Zooey Deschanel Embraces the Word 'Quirky' and Thinks Businesses Should Too
-
A Simple (But Not Easy) Guide to Achieving Almost Any Dream
-
Making Time to Be 'Useless' Is a Vital Part of Creating Anything Valuable
-
A Billionaire Who Operates More Than 2,400 Franchises Knows These Types of Franchisees Make the Most Money
-
How Relentless Optimism Fuels Success for Hilary Schneider, CEO of Shutterfly
-
The Paradox of Celebrity Tequila
-
Social Media Was Draining Me, So I Gave It Up. My Business Has Never Been Stronger.
