Good Article on IC v. Employee distinction
I rarely like what other people write about the IC-Employee distinction because they tend to speak in absolutes. But this is a pretty good article.
I'm not sure how realistic some of the advice is. I question whether any IC is going to provide their tax returns, or whether having them isn't going to make you look a bit like you're protesting too much if you're audited. But the items listed to collect are great goals.
Of course you can have all of the paperwork in the world and if you treat your ICs like employees, dictating their every move, you're sunk if you're audited. But if they truly are in business for themselves odds are they wont let you do that.
One final caveat. Often the relationship starts out Okie-Dokie fine. And then after 6 or 10 months of doing projects for you, the IC decides, why bother with these ads in the local paper, I have enough work I don't have to advertise any more. And then next year, they skip the yellow pages ad. And in a year or two they are working for you full time, no longer keep their professional memberships, have no other customers. and you're slip sliding back into employee territory.
