At the SMBMVPtour stop in Portland we’re having a business lunch. My topic will be employee versus independent contractor.
What I don’t want to hear from anyone is… “I’m going to hire an employee and give them a 1099”. An employee is someone that you control the business relationship. If you control, you are an employer not a hire-er of a contractor.
Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms”
Independent contractors have to be independent. They have to set their own hours, their own schedule. They have to provide their own tools.