Employee vs. Independent Contractor

Nate Piche Employee or Independent Contractor? When choosing whether to classify a fake as an free lance avower or an employee the employer has umteen assess related and non-tax motivations to choose the former. The biggest motivations are the many taxes that the employer result non be responsible for withholding if they choose to classify a thespian as an indie asserter. One of the largest responsibilities of an employer is the role it plays as tax collector for the government. If an employer is able to classify its worker as an independent contractor rather than an employee they would non have to shell about withholding federal in complete tax, FICA taxes, FUTA taxes, and state income taxes. Instead this tour would fall upon the independent contractor when tax season comes around. at that place are non-tax benefits for the pedigree in choosing to classify a worker as an independent contractor as well. Employers do non have to worry about payin g into workers compensation plans for independent contractors, they do not have to pay health or welfare benefits, pay into pension plans, or give back phone line expenses. With all of those pros to classifying a worker as an independent contractor you have to wonder why businesses choose not to.

along with those many benefits there are also a a couple of(prenominal) disadvantages. Independent contractors, by definition, do not work score hours which means they are free to come and go as they please which could lead to schedule disruption. thither are risks of disloyalty to the fraternity that are increased by hiring as an i ndependent contractor because their liveliho! od is not connected with the business entity. A trine major disadvantage is that the companies may not own the copyrights on materials created by independent contractors (Durban, 2010). Those negative completely certainly do not seem like they would do enough to rede an entity from classifying all of its workers as independent contractors. The biggest reason to not...If you indigence to use up a full essay, order it on our website: BestEssayCheap.com

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