Employee vs. Independent Contractor: Why Classification Matters [Infographic]

by Christine Mortensen on May 6, 2014

Whether you’re hiring full-time staff or freelancers, you need to know how to classify workers to the satisfaction of the IRS – or possibly pay for it later. Conversely, if you’re offered a job but the company insists on paying you as an Independent Contractor, you might be getting the short end of the employment stick.

This infographic highlights information that you need to know whether you’re the one hiring workers, or you’re being hired. Additional information can be found if you follow the links at the bottom of the infographic.

Contractor vs. Employee

This article originally appeared on the WunderLand blog. Re-published with permission.

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  • Vern Marker

    This is advice I could have used roughly 6 years ago. I took a position as an “in-house” independent contractor. I had an office, company title (Internet Marketing Manager) and attended company functions such as the Christmas party just as though I was an employee. BUT… I was responsible for my training, most of my equipment and all of my taxes. It was great until the IRS showed up and ruined the party. Thankfully, I was able to control the IRS and get on with my life. Don’t make this expensive mistake and get taken advantage of like I did.

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