Independent Contractor Myths

Can you recognize myths surrounding classification of workers as independent contractors? Over the past few months, we published a series of blog posts on ComplainceHR.com that focused on our whitepaper “Independent Contractor Myths vs. Reality” to help you better understand this complex topic.

Check out these common myths:

• A short IC project poses no misclassification risk
• If an IC has been engaged by other companies, it is safe to engage them as an independent contractor
• A signed independent contractor agreement substantiates the classification
• Consultants with their own corporations are automatically independent contractors
• A consultant with a business license and liability insurance poses no risk to the client company
• Contractors who telework or perform the work off-site are independent contractors
• Documenting an independent contractor’s project is a waste of time
• It is safe to follow established industry practice when classifying certain workers as independent contractors
• If one agency considers the worker an independent contractor, then all others will also
• A company issuing a 1099 tax form to the contractor automatically makes them an independent contractor
• Independent contractors are not entitled to any of the benefits and protections provided to people who meet the definition of an “employee”
• Government agencies hold everyone to be an employee because they want to capture the tax revenue and guarantee worker protections, therefore there is no such thing as a valid independent contractor
• There is one standard test in the U.S. to determine whether someone qualifies as an independent contractor

• What is an independent contractor?
• Why engage an independent contractor?
• What is employee misclassification?

Don’t forget: You can use Navigator IC to generate a risk report of classifying a specific worker as an independent contractor. 

Feel free to reach out to us at support@compliancehr.com with any questions.