Mitigate Misclassification Risks

Does your worker have the ability to work for other companies at the same time?

Independent contractors are self-employed and can work for multiple clients at once. If your contractor only has the time to work for your business, they should likely be classified as an employee.

Do you give your worker feedback or coach them on their process?

Independent contractors are just that: independent. That means the way they approach work is not defined by you. Only the output and deadlines are driven by you.

Is your worker’s contribution a key aspect of business operations?

Independent contractor work should not be critical to the success of the business. If you can’t provide goods and services without this worker, then it’s likely they should be classified as an employee.

Is your worker paid either by project or for a specified period of time?

If a worker is paid hourly, weekly, or monthly without an end-date, that’s often an indication that they should be classified as an employee. Independent contractors typically send invoices to you on a per project or per period basis.

Do you offer your worker benefits?

Benefits are typically an employee perk and are not meant for independent contractors.

Do you reimburse your worker for work-related expenses?

Independent contractors are typically responsible for their own work and travel expenses. A company’s expense and reimbursement policy is typically applicable for employees only.

Do you provide your worker with equipment, like a laptop, monitor, or phone?

Workers who receive equipment from their employer to perform work-related tasks are most often classified as employees.

Does your worker have a company email with your company domain?

Workers who have employer emails are most often classified as employees.

Do you include this worker in regular performance review cycles?

Contractors often work independently and may receive feedback on a project-by-project basis. Typically regular performance review cycles are only offered to employees.