independent contractor

One of the hot topics on the First Class Lounge Forum this week has been the question of whether the person we might have working for us should be an independent contractor or employee. There are actually two sides to this question. If you have an independent contractor working for you, you don’t need to cover them for payroll taxes or benefits.

But, here’s the trick. You don’t get to choose whether the person working for you is an independent contractor or employee. The IRS chooses and sometimes they change their mind.