Friday, November 12, 2010

Beware When Hiring "Contractors"

As a follow-up to my previous blog on the hiring of contractors.

Remember: Contractors do not get unemployment checks.

Many newly hired employees want to escape employee payroll taxes just as much as employers do, and prefer being contractors. That is, until they are no longer working and are then seeking unemployment insurance. Then they complain they never were independent contractors but really employees.

They file for unemployment insurance and the employer has the difficult job proving the employer/employee relationship.

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