The Department of Labor (DOL) and Internal Revenue Service (IRS)
have announced plans to be more aggressive in their investigations
of independent contractors. They have identified the construction
industry as one of their targets, and it's serious business: The
Obama administration's proposed federal budget assumes about $7
billion in fines and tax repayments during the next 10 years from
When—and when not—to use independent contractors is
tricky for many roofing contractors. Clearly, subcontractors are
needed for many roofing projects and, typically, steer clear of the
definition of independent contractor. But the issue is far from
black and white.
When determining whether an employee is an independent
contractor, the IRS uses its "right to control" test, which
measures how much behavioral and financial control an
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