Employee Classification — Self Audit

"If your business uses independent contractors, get ready for new scrutiny. Hoping to boost tax revenue, the IRS and many state governments are cracking down on how companies classify their workers."
CNNMoney.com | March 29, 2010

This new scrutiny is coming just as companies, struggling with competition in this economy, are looking to contract out work as a way to reduce costs and remain competitive.

The crackdown on independent contractors will be widespread in cash-strapped states, and the red flags for any kind of compliance audit are numerous.

The bottom line — how you classify your current and future workers will take on increased significance and risk.

The following self-audit can help you to determine if you and your company are at risk. Taking five minutes out of your schedule to evaluate your employer-contractor relationships could save your company from a potential financial disaster.