The Independent
Contractor Trap
WHY?You are listening to a lawyer talk in front of a screen.
Penalties• IRS:–$5,000 per violation–Treble damages for “wilful violations”
• Colorado:–$5,000 per willfully misclassified (first
time)
–$25,000 for each subsequent offense
WHY?You might take a risk.
Fees•Payroll taxes•Overtime pay•Benefits•Minimum wage•Legal fees
FAIR LABOR STANDARDS ACT TEST
IRS TEST
UNEMPLOYMENT COMPENSATION
OTHER TESTS
Sum it up• Behavioral control• Financial control• Type of relationship
WHAT DO YOU DO?
Business Documents
I-9 AUDIT
INSURANCE
FILES, RECORDKEEPING + DESTRUCTION
POSTERS
Questions?
