MYTH 1 - Companies are safe if their independent contractors:
A. Work sporadically, inconsistently, or on call.
B. Work for more than one company.
C. Hire and pay their own assistants.
D. Claim they operate a separate business or that they are in business for themselves.
E. Work independently without supervision.
F. Work without interference from the hiring firm; they have inherent freedom in their jobs.
G. Work as consultants.
H. Work one time only or on an as-needed basis.
I. Are paid commissions only or piecework.
J. Keep all (or a large percentage) of the fees collected for their services.
K. Aren't guaranteed a minimum income by the hiring firm.
L. Ask to be treated as independent contractors; the hiring firm is accommodating their wishes.

MYTH 2 - Companies are safe if they:
A. Get the worker to agree he is an independent contractor.
B. Prepare a written contract stating the worker is an independent contractor.
C. Know about other companies which treat similar workers as independent contractors.
D. Can prove that a worker performing many tasks is a true independent contractor in at least one task.
E. Don't control the independent contractor's actions.

MYTH 3 - Using independent contractors is great because:
A. Hiring firms aren't liable for independent contractor's actions.
B. Hiring firms can save a lot of taxes, before the government ever catches them.

MYTH 4 - Family members, corporate owners, and domestic workers are like independent contractors, so they don't pay employment taxes:
A. My family members (children, spouses, parents) are owners, just like me.
B. Corporate directors and sole shareholders are self-employed.
C. Baby-sitters, domestic maids and aides to the disabled are self-employed.


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Contractor Payrolling | IRS 20-point Checklist | 1099, W-2 and the IRS | A True Contractor | Does Incorporation Matter? | What Interests the IRS? | Fines and Ramifications | Common Myths
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