Make sure to review the appropriate state and federal regulations before classifying a worker as an independent contractor, writes Barbara Weltman, president of Big Ideas for Small Business. The designation "has to be appropriate, based on the degree of control you exercise over the worker," she writes. "Boiling this down, if you have the right to say when, where and how the work gets done, likely the worker is your employee." And make sure you are following a consistent process in the way you classify workers, she advises.

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