Navigating Contractor vs. Employee Classification: Expert Guidance

In this episode, we explore the complexities and responsibilities surrounding the classification of workers as employees or independent contractors. We discuss a detailed case study involving a rapidly growing client who has primarily been using contractors. The conversation covers the importance of proper classification, the role of advisors in helping clients navigate compliance, and distinguishing factors between employees and contractors. We also touch on the limitations of bookkeeping engagements in this context and offer practical advice on steps to take, including contacting the Department of Labor and using IRS guidelines.

00:00 Introduction to Contractor vs. Employee Dilemma
01:03 Client's Business Growth and Contractor Concerns
01:52 Analyzing Contractor Relationships
02:55 Guidance on Contractor Classification
04:35 Scope of Work and Advising Clients
07:38 Determining Contractor vs. Employee Status
10:18 Legal and Compliance Considerations
11:55 Seeking External Expertise
13:46 Final Advice and Resources

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