Many different types of businesses in Schaumburg, Illinois, employ workers for all types of jobs. Some people work as part-time or as full-time employees, while others are classified as independent contractors. However, the biggest mistake a company can make is misclassifying a worker. Whether you are a small or midsize business, how you choose to classify your workers will greatly impact your company financially.
At the Miller Law Firm, P.C., we help employers all over Cook County, DuPage County, Kane County and Lake County, Illinois, who have legal concerns about the misclassification of their employees. If you're not sure as to whether or not you hired an employee or independent contractor to work for you, then you could be paying expensive fines and penalties as deemed by the IRS. Not to mention, you could also be responsible to pay back payroll taxes.
Contact the Miller Law Firm, P.C. if you have any questions concerning the misclassification of employees and independent contractors. Call (847) 995-1205, to schedule a free consultation.
The Internal Revenue Service (IRS) and the Illinois Department of Employment Security (IDES) run certain tests to determine the difference between an independent contractor and an employee. Each year, the IDES targets employers and small businesses they suspect may not be in compliance with Section 212 of the Illinois Unemployment Insurance Compensation Act.
The IDES will take a hard look at your business and how you classify your workers, since many employers are not required to pay Social Security (FICA), Medicare, Federal Income Taxes and Unemployment Insurance Taxes, to workers classified as independent contractors.
In the majority of court cases regarding misclassification of workers, the most common factors the IRS uses to classify independent contractors as employees depend on whether or not:
In cases involving the IDES, a company must prove whether or not:
Employers should always discuss their concerns with an experienced employer defense attorney, if they have any doubts about how the IRS and IDES will classify a worker.
Contact the Miller Law Firm, P.C. in Schaumburg, Illinois, to see how we can best address your legal needs regarding classification issues between independent contractors versus employees. To schedule a free consultation, call (847) 995-1205 today.