Independent Contractor vs. Employee Controversies Looming

With the current economic malaise, more than a few companies are considering the significant savings that hiring independent contractors rather than employees can bring. But can it bring savings? Senator Obama, in introducing legislation on this topic, estimated the savings at a whopping 30%. But are these really savings, or is it wishful thinking, that ultimately poses a trap? Springing it can bring tax and legal consequences of staggering impact.

In this Tax Law Channel  podcast, Scott Drake interviews Rob Wood (author of Legal Guide to Independent Status (4^th Edition 2007) over the differing legal standards at play in this increasingly important morass. Considering the seemingly small ways a worker status issue can arise, and the interrelationship of these rules, it can be like dominoes waiting to fall.

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