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The Law & Classifying Workers as Indenpendent Contractors

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Why does the law dictate that workers be classified as either independent contractors or employees? How does the law accomplish this regulation?

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This solution describes why the law dictates that workers be classified as either independent contractors or employees and how the law accomplishes this regulation. A helpful link is included.

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The law dictates workers be classified as either independent contractors or employees for several reasons: companies do not withhold taxes for independent contractor, companies do not pay into FICA, disability, unemployment funds for independent contractors, and independent contractors are not covered with benefits like sick pay, vacation, health insurance or ...

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Sally Baldwin, Ed.D
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  • Ed.D, Boise State University
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