Engaging independent contractors is an effective business practice that results in cost savings, flexibility and efficiency, and creates the ability to obtain top talent with specialized skills for the periods needed. If you do it right, using independent contractors can be a great business strategy.
But beware, misclassifying a worker is risky business. The following self-audit can help you to determine if you and your company are at risk. Taking five minutes out of your schedule to evaluate your employer-contractor relationships could save your company from a potential financial disaster.
Instructions: The following questions should be answered considering the use of one independent contractor. If you work with multiple contractors and their jobs and functions differ, you should take this audit repeatedly per each contracting situation.