Hiring independent contractors give greater flexibility in expanding and contracting the workforce, reduces exposure, and saves companies cost. Having such benefit, many companies consider using independent contractors rather than using employees to perform certain tasks. However, there are many circumstances that have to be considered when companies arc using independent contractors; they should not be classified as regular employees under labour laws. Managers could use basic rules and the twenty factors test of IRS as a guideline to protect companies for being sued by workers and government agencies. Considering different approaches before hiring, during the work period, and after the services end would be critical for managers to be able to manage independent contractors effectively.
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