Regulators Crack Down on Classifying Workers as Contractors

[pipoman]

3. Independent Contractor status has very specific guidelines

which are a bit difficult to comply with, and are often violated in the real world. One example of this would be; If I own a car lot and my sales people are IC, I cannot tell them what time they must be at work or leave work making it incredibly difficult to be sure someone is there at all needed times. I also cannot dismiss anyone for not being there at a stated time. There are many rules like this which if not followed exactly makes the contractor an employee due wages, withholding, and benefits. The IRS often audits businesses who submit a lot of #1099s as tax deductions and large amounts of the recipients of the 1099s are not filing taxes.