Are Contractors Employees
Posted in Phoenix Contractors on 08/23/2011 12:57 am by admin
Which companies have coverted independent contractors to employees in the past?
I would like to know which large companies have converted a workforce of independent contractors to employess over the last few years, and if there are any incentives or tax breaks if you do so.
A company isn’t supposed to decide to treat people one way or the other. The law determines whether someone is an employee or independent contractor.
That being said, many companies try and treat people as independent contractors to get out of paying their share of the employment taxes, health insurances, workers compensation.
The incentives in paying people as employees are indirect. If you treated employees as independent contractors and the state/IRS determines that they should’ve been employees, the penalties can be staggering.
Do it correctly and avoid the penalties. That is the incentive.
People Contracts- Contractor or Employee?