Classifying Employees as Independent Contractors

Jim Holland’s article “Classifying Employees as Independent Contractors” was featured in Midwest Contractor on January 29, 2016.

For construction industry firms, the appeal of classifying workers as independent contractors is obvious. The pressure to remain competitive is constant, and subcontracting to independent contractors reduces costs and allows construction firms to concentrate on their core competencies.

Specifically, using independent contractors relieves responsibility for payroll taxes, workers’ compensation insurance, Social Security, Medicare and other withholdings. It also may reduce a construction firm’s obligations under OSHA and provide other benefits.

In the article, Jim examines the following topics:

• The Misclassification Risk
• Criteria for Employee Classification
• What Construction Employers Can Do