How to control the limits of the independent contractor relationship

To ensure that your company is in compliance with the federal and state laws controlling the limits of the independent contractor relationship, periodically go through each of these steps (at least every six months is the recommended period between audits).

• Analyze all traditional workers

• Understand the risks of misclassification

• Evaluate the benefits of employee versus nonemployee status

• Choose what status would benefit your company and maximize the factors that would support that status.

• If the company is contracting without a leasing company, then maximize your control and minimize duties performed by outside agency.