Industry News

Are independent contractors really employees? The IRS wants to know

Real Estate Tax Talk
Published on Sep 30, 2011

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by CareyBot

A hot-button issue for the Internal Revenue Service is the misclassification of employees as independent contractors for employment tax purposes.

Classifying a worker as an independent contractor instead of an employee can save a hiring firm a lot of money because it doesn't have to pay half the worker's Social Security and Medicare taxes out of its own pocket (as it does for employees), or withhold any tax from the worker's pay.