INSIDER's Pop Quiz!
Question: To cut down on payroll, would it be okay for an association to lay off some of its maintenance crew and rehire them as independent contractors?
Answer: It would be a big mistake. Tax authorities would be quick to reclassify such workers as employees.
For more information on the tax consequences of employees vs. independent contractors, search our online archive for “Avoid Tax Troubles over Use of ‘Independent Contractors.’”