Can I save money by hiring people as independent contractors instead of employees?
( Top ) Perhaps. Hiring a skilled independent contractor to perform a specific job can be a way to get a job done without investing in the costs associated with recruiting and retaining an employee to do the same work. It is extremely important, however, to be certain that the individual is legally an independent contractor and not an employee. A business owner who hires someone as an independent contractor who subsequently is determined to be an employee can incur substantial costs and penalties.
