How to Determine Hiring Status
Independent Contractor or Employee
For federal tax purposes, this is an important distinction. Worker classification affects how a person pays his/her federal income tax, social security and Medicare taxes, and how a person files his/her tax return. Classification affects a person’s eligibility for employer and social security and Medicare benefits and a person’s tax responsibilities. If a worker isn’t sure of his/her work status, he/she should find out now.