09/02/2026
Independent Contractor or Employee? Getting It Wrong Can Be Costly.
Independent contractors can give businesses valuable flexibility, but simply calling someone a contractor doesn’t make them one.
Worker classification depends on the actual working relationship, including:
• How much control the business has over the work
• How the worker is paid and who covers expenses
• Whether the worker operates independently
• The overall nature and length of the relationship
Misclassification can result in unpaid payroll taxes, penalties, interest and other unexpected costs.
If your business uses independent contractors, it may be worth reviewing those relationships before a tax notice, audit or employee concern brings the issue to your attention.
Learn more about employee vs. independent contractor classification and how Stelios Payroll can help in the comments.