It’s important for employers to know the difference between independent contractors and W-2 employees for legal reasons. Sometimes differentiating between the two is frustrating and confusing, especially for an employer, but it’s a necessary employment step.
Independent contractors and employees can be paid for the same or similar work, but it’s vital to know the legal differences between them.
Below are some ways to determine if someone is an employee or an independent contractor.
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It is common in many industries to use the services of individuals as independent contractors, or “1099 employees,” rather than putting them on payroll as W-2 employees. This is not exactly paying people “under the table,” as their income is reported on 1099 forms at the end of the year, but it is still a risky practice under Massachusetts law, and one which can cost an employer far more than the savings realized by using independent contractors.
Continue reading “What Every Business Owner Needs to Know About Massachusetts Independent Contractor Laws”