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Independent Contractor or Employee?
Whether it for various tax reasons or for liability reasons, a lot of businesses prefer to treat workers as independent contractors, rather than employees,
It is important to have a good understanding of just what separates an independent contractor from an employee.
Failing to do so can bring the wrath of your local state tax department and the Internal Revenue Service upon you.
The general rule is that an independent-contractor relationship exists if you can control the result of the work, but not the means and methods of accomplishing that result.
To determine independent-contractor classification, you should be able to answer YES to these questions --
Although these restrictions are not, by any means, inclusive, and may vary from situation to situation, they do provide a general outline of IRS tests.
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