Navigating Employee vs. Independent Contractor Classification
Determining whether a worker should be classified as an employee or an independent contractor is pivotal for employers to maintain compliance with state and federal regulations. This classification not only influences taxation, benefits, and legal protections but also shapes the dynamics of the working relationship. In this guide, we'll delve into the delineating factors established by both federal statutes and Illinois state laws for classifying workers, supplemented with practical examples to explain the disparities between the two classifications.