PPB March 2019

few of the questions used to demonstrate the true “independence” of a contractor (this list is not all inclusive): ºº Does the person control his /her work hours, methods, tools, etc.? ºº Can the person work independently without oversight or supervision from company management? ºº Can the person work for other companies or clients doing similar work? ºº Is the person given expectations they can meet however they wish or does the company dictate every procedure? ºº Is the person expected to follow company policies such as attendance and progressive discipline? ºº Can the person gain a profit or suffer a loss from the work arrangement? 2 Do not be surprised by an audit of the relationship. Utilizing independent contractors can create increased exposure to federal and state government audits. These agencies focus on companies with independent contractors to make sure they are not misclassifying workers to avoid paying taxes, minimum wage and overtime, as well as not providing required benefits such as health and workers’ comp insurance. Regardless of the makeup of your workforce, it is important to remember there are regulations to follow for all types of workers, and the penalties for employee misclassification or failing to follow those regulations can be costly. Paige McAllister, SPHR, is a contributor for Affinity HR Group, Inc., PPAI’s affiliated human resources partner. Affinity HR Group specializes in providing human resources assistance to associations such as PPAI and their member companies. www. affinityHRgroup.com The trend of self-employment is increasingwith expectations of 42million peopleworking as self-employed independent contractors by 2020. | MARCH 2019 | 89 THINK