If you own a small business, you may be confused about the legal differences when hiring employees and hiring contractors. Finnell Legal can help.

 

Classification of hires affects the laws and regulations your business is required to follow. If your business does not adhere to the correct laws and regulations for a classification, or if you misclassify a person, it can put your company in legal and financial jeopardy, and can lead to problems with the IRS. This, in turn, could tarnish your company’s reputation and inhibit you from hiring new employees or contractors, sending your company down a destructive path.

 

When it comes to federal labor laws, many do not apply to contractors, however, misclassifying employees as contractors to skirt legal and financial obligations can have serious consequences. Even when employing a contractor, a small business owner is still required to take necessary steps to report payments to the IRS.

 

For small business owners who have employees, it is important to understand which federal and state labor laws apply to your company. Many of these laws are dependent upon the the number of employees.

 

The Fair Labor Standards Act (FLSA), Fair Credit Reporting Act of 1970 (FCRA), Federal Insurance Contributions Act (FICA) and the Consumer Credit Protection Act (CCPA) are only a few of the laws you should be knowledgeable about if you own a small business.  

 

Make sure your business is compliant. Contact Finnell Legal today at 352-222-9242 to gain a better understanding of the legal differences and requirements when hiring employees and contractors.

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