The Independent Contractor, Essay Example

The government has an interest in classifying the worker in the category of an employee. The greater the number of employees in the workforce, the larger the tax revenues which are received by the government are evaluated as manifesting. This aspect of employee status deters the employees from obscuring or under reporting their income. The distinctions which are present between an independent contractor and an employee are marked (Emerson 287).

There are a number of evaluations which are performed in order to ascertain if a worker qualifies as an independent contractor or an employee. The businesses which don’t learn from the distinction prior to contracting an independent contractor can make mistakes. These mistakes imply trouble with one or more government agencies. In order to deter the occurrence of fines, additional taxes, audits and punitive actions, the business should acquire knowledge with regards to all of the government agencies prior to hiring a worker. The IRS classifies an employee or an individual as someone who has the aspect of being able to be dismissed (Emerson 288).

The classification includes workers who are recipients of a salary, provided authorization by the business, and those who have received training by the business. The classification of worker also extends to workers who are recipients of benefits from the employer and workers who are able to stop working without incurring any contractual liabilities. The workers must also be provider of operations which are necessary for the business enterprise to function in order to be detailed as employees. These distinctions are different from individual contractors who do not receive an hourly daily or weekly salary and must supply their own resources in order to provide services to the business (Emerson 288).