Episode 24: Independent Contractor Relationships

In this week’s podcast, Alexander and Peter discuss the specifics of independent contractor relationships. While many generally understand what an independent contractor is and what an employee is, the understanding of the distinction between the two is often vague.

As an employer, why is it important to know the difference between the two? From the eyes of federal and state government, misclassifying your workers can result in paying hefty fees and penalties. For example, even if an employer and a worker come to an agreement that they have an independent contractor relationship, the government will be strict to ensure that workers are classified in the correct category if they are not, regardless of the intentions and contracts of both parties.

What aspects of distinction does the government look at between the two classifications? What are the six parts of the process that federal and state governments use when examining the relationship between a worker and an employer? What steps must you take to prove that your worker is, in fact, an independent contractor? This week’s podcast covers both the general federal guidelines as well as Washington-state specific rules. Listen to find out more.

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