Apr
24

Independent Contractors – State And Federal Agencies Are Cracking Down

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The Denver/Boulder BBB is offering a class on Independent Contractors.

Seal of the United States Internal Revenue Ser...

Seal of the United States Internal Revenue Service. (Photo credit: Wikipedia)

Since many small businesses – including pressure washing companies – classify their employees as independent contractors, this is important training. Most independent contractors that work mainly for one company are really employees.

We’ve written before ( Your Employees Are Not Independent Contractors ) about how classifying your employees incorrectly can cause big problems with the IRS and state tax agencies.

And now the Better Business Bureau is informing their members of the increasing crackdown on incorrect classification of independent contractors. The class they are offering – along with the Mountain States Employer’s Council – shows which federal standards must be met to “avoid substantial monetary penalties.”

If you’re trying to save your business money by calling your employees independent contractors, your time to get your affairs in order is running out. State and federal agencies are starting to crack down on employers who are using this tactic to get around paying taxes.

And small businesses – especially those that operate out of their homes and avoid many other business regulations that more visible companies have to comply with – have a target on their backs.

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