Top 10 List of Work Comp Audit Errors

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Independent Contractor

A Workers Compensation Term Definition

Independent Contractor...
An entity or individual who performs specific work for another but does not fall under the direct supervision or management and is not an employee of the person or organization who contracted for their services.

BE CAREFUL. Who you as an employer may call an independent contractor and the state where you conduct business may call an independent contractor may be very, very different things. Many States have very specific definitions of just who is an independent contractor. You have to remember, this term is not just a workers compensation term but a term that spans from workers compensation topics to those of payroll taxes and when you're messing with a government authority and their taxes, look out!

So here's the scoop. You must know who your State considers to be an independent contractor. In order to do so you must check with your State authority to be sure. Some States have not only specific definitions but have established government departments to regulate independent contractors operating within their state. You may find that each State handles independent contractors just a little differently. So be aware! Just because you call them independent contractors may not mean they are!

Contact our office if you have any questions about independent contractors or if we can be of any assistance to you with your workers compensation problems.





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