Getting the status right -- when hiring independent contractors versus employees -- makes a world of difference. With respect to business tax obligations, there can be far-reaching consequences. Do you know the ins and outs of your workers’ designations? This quiz can help!
Contractor vs. Employee Quiz
The Internal Revenue Service (IRS) publishes its supplement to Publication 15 (Circular E), which is referred to as the “Employer’s Tax Guide." The booklet seeks to explain to the entrepreneur or larger business how to determine whether a worker is an independent contractor or actual company employee. Unfortunately, there is nothing simple about the rules and regulations. Even if you think that you understood them perfectly, go ahead and take this test to make sure – it is always better to be safe than sorry when dealing with the IRS.