Christopher Boman and Boris Sorsher article “Employee or Independent Contractor: Why It Matters?” was featured inHVACR Business magazine on January 15, 2015.
Of course your employees matter. If they didn’t, you wouldn’t hire them, trust them to do important work or keep paying them week after week. And if you think about it at all (which you probably don’t), you assume they realize that. It’s only logical.
Every employer eventually tackles the question of whether its labor force is composed of employees, independent contractors or a combination of both.
In the article, Chris and Boris examine the importance of being able to classify employees and the pros and cons of hiring employees vs. independent contractors.
The appeal of the independent contractor classification is understandable because the benefits are significant, including the elimination of the need to pay payroll taxes, secure workers’ compensation insurance or make unemployment insurance withholdings. Independent contractors also do not receive overtime or double time pay or meal or rest breaks.
Not surprisingly, many employers simply assume an independent contractor classification is defensible and that if it is challenged, a finding that the employee was misclassified will not cause any serious harm. This assumption is misguided.
Misclassifying employees has very serious consequences. A failure to properly classify can subject the employer to administrative enforcement actions, civil penalties, fines, unpaid wages, class action and representative action lawsuits, and the assessment of back taxes and premium payments and related penalties.
To read the full article, please visit HVACR Business (pg. 10).