Independent contractor or employee?

A business that misclassifies a worker faces steep penalties.

Here are several resources to help your small business

make the decision:

Frequently asked questions: Find answers from the

Employment Development Department at www.edd.ca.gov/taxrep/taxfaq.htm#CommonLaw or the

Industrial Relations Department at www.dir.ca.gov/dlse/faq_ independentcontractor.htm.

Checklist: You can download the EDD’s Employment Work Status Determination information sheet at its website, above, or request a copy at (888) 745-3886. The EDD’s Independent Contractors Misconceptions is available in English or Spanish.

Internal Revenue Service: To check the IRS’ stance, see its

Independent Contractor vs. Employee summary at www.irs.gov/taxtopics/tc762.html.