Many parties believe that they are entered into an employer-independent contractor relationship. However, this may not actually be the case in the terms of how the courts appraise it. The benefits of having an independent contractor relationship, as opposed to an employee relationship are numerous in amount for both parties. The independent contractor is able to garner income from several sources at once, and grow their own business. Whereas the employer is able to avoid making payments to benefits, pension plan, and other contributions for what are considered parts of the employee-employer relationship. Issues tend to arise when the parties are inaccurately classified as to the type of their relationship. It is very important for employers to correctly classify their relationships, as incorrectly classifying the relationship can result in unnecessary fines and penalties.
Charles (Chuck) D. Tahirali
Senior HR Consultant