If your business qualifies, using independent contractors is a great way to save precious dollars. You can pay your people a little more but save a lot less in matching deductions. It’s a sweet deal all around, as long as your people are agreeable. You give up control and they gain freedom.
Flash forward to today. In the Uber economy workers are starting to fight back. What? No benefits? Strict work rules mean the independent contractor feels a loss of that promised “independence”.
For every successful “gig” venture there are market losers. They are fighting back, too. They claim unfair use of the 1099 regulations and are going to court to press their case.
Whenever there is this much change accompanied by legal wrangling, uncertainty reigns.
The safest bet is to use real employees. But, if you feel your business has solid grounds for using independent contractors and you can create an agreeable relationship with your workers, go for it. Just make sure you understand all the regulations and stick to them.
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