in detail explain essential characteristics that a successive independent worker must possess?
Answers
Answer:
Independent contractors are common in many occupational industries. As an employer, it is imperative to comprehend the difference between an independent contractor and standard employee. This is because a business may incorrectly believe some of their workers are independent contractors, and the distinction between these occupational statuses can greatly affect an employer's responsibilities and obligations under the law.
For example, an employer will generally pay approximately 40 percent of an employee's earnings toward entitlements and taxes, such as Social Security, unemployment benefits, workers' compensation and varied health and retirement programs. As a result, many companies prefer to hire independent contractors in an effort reduce such financial obligations and diminish business costs.
Yet, it can become much pricier to a company owner when the government auditor determines that an employer has misclassified an employee as an independent contractor. If an employer misclassifies the status of a particular worker, this could lead to serious financial consequences including the following:
Wages will be retroactively reported.
Taxes will be assessed.
Interest will be charged on back pay at 1.5 percent per month or a similar rate.
The audit may period may increase.