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.
“If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
If you can direct or control only the result of the work done — and not the means and methods of accomplishing the result — then your workers are probably independent contractors.
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.