Senior IT Consultant, NJ
“IAI has enhanced my success by relieving me of the...
Many companies are hiring independent consultants to fill positions instead of hiring permanent workers. Due to the temporary status of the work involved, comapanies are mistaken that the workers are classified as 1099 workers.
By classifying your workers as independent consultants you are opening up your company for additional scrutiny by both the IRS and state governments. Small details such as where the employee works, what he wears, and how he works can significantly impact his classification.
The following Q&A summarizes the 20-Question test the IRS uses to determine whether or not an employee is classified properly. As you can see many of the determinants are not strictly defined and are open to interpretation. Our unqiue business model eliminates co-employment risk and enables independent consultants to fully comply with all tax regulations by performing all payrolling and invoicing for them.