Using independent contractors can be a huge advantage to companies, saving them money and affording their employees flexibility. But many businesses don’t realize how much trouble those hires can get them into with the IRS. You may think you’re saving money, but using outside contractors may actually cost you much more than you imagined.
According to the IRS, 80% of workers currently classified as contractors are actually employees. That means they’re missing out on benefits they can sue to receive. Microsoft had to pay $96.9 million to independent contractors, and the IRS is enthusiastic about auditing employees and receiving unpaid payroll taxes and penalties.
Make sure your business is protected and your contractors are not misclassified. Using Independent Contractors will show you how.