Are they subcontractors or employees?

Classifying your workers can be very attractive to avoid paying employer taxes and benefits. The IRS gets very nasty if you are caught mis-classifying your workers. Even if the worker agrees or even request to be treated as a sub, consider these questions:

  • Are they self-directed and bring a specific expertise that is not available in your workforce
  • Do they supply their own tools and set their own hours
  • Do they provide these services to other clients
  • Do they have a business presence, business name, website, business cards

If the answer is no to any of these, you need to reconsider before classifying them as a sub.

When in doubt – put them on payroll!