Proper Employee Classification

February 25, 2023
Legal document Independent Contractor Agreement on paper close up

As we quickly move into 2023, Human Resources (HR) managers must be prepared for the challenges that lie ahead. Whether a business is a start-up or a Fortune 500 company, an HR compliance check is mandatory.

Statistically, according to IRS estimates, approximately 30% of employees are classified incorrectly [employee vs. independent]. Therefore, pay special attention to the rules.

  • Make sure IRS and Department of Labor guidelines are followed
  • Confirm that independent contractors meet all requirements as outlined by state and federal regulatory agencies, especially the IRS.

HR compliance is no longer an option. HR and hiring managers must continue to remain updated for laws that change on a local, state and national basis.

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