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Article: Label independent contractors correctly: every day, unsuspecting employers find themselves embroiled in the controversy over the status of independent contractors versus employees.
- Article from:
- Security Distributing & Marketing
- Article date:
- July 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 BNP Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The long-running controversy over properly labeling workers and independent contractors shows no signs of easing. But what's in a label? Why do so many electronic security professionals and those who employ them appear to covet the label of "independent contractor?"
At its most basic, the employee-independent contractor controversy boils down the argument that by labeling an electronic security systems marketer or professional as an independent contractor rather than as an employee, an employer can avoid the high costs and voluminous paperwork of a payroll.
In fact, under federal tax rules, all the employer is required to do is issue a Form 1099-MISC to ...