Being commission-based doesn’t automatically make someone an independent contractor. The IRS and courts look at control, benefits, and work history—not just flexibility or pay structure. Learn how long-term employment, company oversight, and access to benefits can legally define a worker as an employee, and why proper classification is critical to avoid costly penalties.

The difference between an employee and an independent contractor hinges on one thing: control. And getting it wrong? That can lead to costly IRS penalties, back taxes, and legal headaches.

Big changes are coming to independent contractor arrangements with the implementation of New York's Freelance Isn't Free Act. Are you prepared? Starting May 20, 2024, this new law broadens the definition of "freelance worker" and imposes crucial obligations on employers hiring independent contractors. Whether you're a small startup or a large corporation, compliance is essential.

Important Update! The U.S. Department of Labor has rolled out a Final Rule that changes how independent contractor status is determined. This new six-factor test will impact how businesses classify workers.