The problem with issuing 1099s to workers who should be classified as employees is that it’s incredibly easy for those classification errors to be discovered by the IRS and DOL. And, when that happens, you’ll be in for an unwelcome surprise in the form of a six-figure payout to correct that mistake.
The short version: When you misclassify an employee as an IC you are still on the hook for all of the compliance issues you are trying to avoid. Download our free Independent Contractor Cheat Sheet to make sure you’re getting employee classification right from the start.
