Looming change in worker classification rules will cost small businesses big bucks
The new rules will result in changing the status of countless “independent contractors” to employees. So why is that such a big deal?
Small businesses rely on independent contractors to perform ad-hoc and infrequent tasks that usually do not require the attention of full-time employees. Often called “1099 workers” (thanks to the tax form that needs to be filed with the IRS to report payments over $600), these freelancers (or “gig workers”) are stand-alone entrepreneurs who oftentimes serve multiple customers.
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the Biden administration feels that these independent contractors need more protections. And so the Department of Labor (DOL) is taking action.