2020 Employee v. Independent Contractor: Tax & Employment Law Considerations

Characterizing a worker as an employee or independent contractor carries with it a multitude of substantial legal consequences, particularly in employment and tax law. If a worker is an employee, the tax and compliance “cost” of a worker is substantially more than if the worker is an independent contractor. The Affordable Care Act also requires employers of a certain size provide full-time (in distinction to part-time) employees with health insurance. In employment law, if a worker is characterized as an employee, the employer acquires EEO liability for the employee’s actions.This program will provide attorneys advising businesses with a practical guide to classifying workers as employees or independent contractors, the substantive legal consequences under tax and employment law, and best practices to avoid liability.

• Employment law factors for characterizing a worker as an employee or contractor
• Employer liability for EEO and discrimination violations committed by contractors
• Tax factors to determine whether a worker is a contractor v. an employee
• Tax liability and withholding obligations of employers depending on the classification
• Affordable Care Act implications of characterizing an employee as full-time or part-time

Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for GAL Certification, ethics, elimination of bias or Kansas credit.