What are the factors that determine someone is an independent contractor?
i have an opportunity to hire an employee as a consultant, but If I have to put him on the payroll, I found out they I have to pay workers compensation, payroll taxes and hire a CPA to do my payroll etc..
I was told that if I simply paid him a consulting fee and issued him a 1099 at the end of the year, I would avoid these problems. My concern is what is the IRS position on classifying employees as independent contractors? I just want to ensure that I meet the minimum safe harbor provisions.
Thanks a lot!