This one trips up a lot of small businesses. If you misclassify someone, you risk back taxes, penalties, and legal headaches. Here’s how to know.
A great place to start is asking yourself these three questions:
- Control – Do you tell them when, where, or how to work? If yes, they’re likely employees.
- Tools – Are they using your equipment, email, or software? Employees usually do.
- Exclusivity – Are they working only for you and expected to stick around long-term? That’s more like an employee.
Contractors are more independent.
They usually:
- Set their own hours
- Use their own tools
- Work with multiple clients
- Are hired for a specific project or timeframe
Still unsure? Download our free guide: Contractor vs. Employee: Guidelines for Classification.
When in doubt, get professional help!
We offer quick consults to help you figure this out before it becomes a problem. And, if you need, we also help companies navigate the process of moving their contractors to employees.
Reach out to us—we’d love to help!
Email us at team@copperquailconsulting.com, call us 602-512-5849, or schedule a quick Zoom call with us.
