When it comes to building your team, one of the most important decisions you’ll have to make is whether you should hire employees or independent contractors. Good thing for us, the IRS has created some guidelines to help us out. The bad thing is we have to interpret all of their jargon to see what actually applies to us.
Here’s what it comes down to — CONTROL!
As the business owner, do you direct and control the work of the worker? For example:
- When and where they work
- The tools they use to complete the job
- How they are evaluated
If you answered yes to any of the above, then most likely you have employees. Check out the guidelines set forth by the IRS. Then, talk to your accountant to get their professional guidance.