With the increased cost associated with being a business owner, many entrepreneurs are turning to hiring independent contractors rather than full-time employees in order to keep costs under control, according to an article published last week in the Wall Street Journal highlighting the IRS crackdown on small business owners. Unfortunately, there are many small businesses across the country falsely reporting some full-time employees as independent contractors to avoid the associated costs or they are inadvertently doing so due to not clearly understanding who truly counts as an independent contractor.

“The appeal of using outside workers is growing as many small businesses struggle to stay lean. Some employers also are turning to contractors to avoid hitting the 50-employee threshold that would require them to pay for employees’ health insurance, starting next year, under the federal health-care law, or pay a penalty…” [Read more]