Maintain Subcontractor Independence (Hours & Schedule)

What happens here

A common misstep is establishing a 'continuous relationship' with a subcontractor, which can lead the IRS to view them as an employee. To avoid this, ensure that your subcontractors maintain a level of independence. This includes the ability for them to set their own hours and schedules, rather than having them dictated by your company. Independent contractors are their own bosses regarding when and how they work.

Goal: Ensure subcontractors operate with genuine autonomy over their work hours and schedule.