Smart, resourceful entrepreneurs know the power of finding the right person for the job. They also know that this person may not always require the expense or issues of hiring a full-time or even part-time employee.
Signing on independent contractors can be a key to success for any entrepreneur…but if you don’t correctly classify these workers, you are facing a big and very real risk.
A written agreement with the contractor is a necessary protection, but it’s not sufficient. Businesses must ensure the working relationship meets the criteria set by tax and labor laws.
Unfortunately, those criteria are not obvious or intuitive. – and your State’s Department of Labor is ready and happy to fine you for any uncrossed Ts.
Princeton Business Law can help you create and enforce a thorough agreement contract between you and your 1099s. Contact us for a consultation.
