Employee vs. Contractor

There can be a lot of gray area when it comes to running a business, but when it comes to labor, that shouldn't be the case. Keep employees and contractors classified (and documented) correctly by evaluating the following aspects of your working relationship:

  • Exclusivity - Is the individual in question exclusively working for you, or do they assist other businesses in a similar way?
  • Tools - The individual in question likely uses tools or resources to complete a job. Who do those belong to, your company or the individual?
  • Control - Is the individual in question managed similar to other company employees, or does he/she manage work flow on their own? 

If you've answered the above questions and still aren't sure how to classify labor, we can help! Email David@DEKEbookkeeping.com to learn more.