Nonprofit Employees Versus Independent Contractors: What's The Difference?

It's crucial to classify your paid workers correctly

According to the IRS, the following conditions determine if a worker is an employee or an independent contractor:

• Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

• Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how the worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

• Type of Relationship: Are there written contracts or employee-type benefits (i.e., pension plan, insurance, vacation pay, etc.)? Will the relationship continue, and is the work performed a key aspect of the business?

Ready to hire?

• Independent Contractors
• Employees
• Volunteers