Working with Independent Contractors

Exam Questions: 70
Course Level: Basic
Pages: 324 | Content: 292, Supplemental: 32
NASBA Area of Study: Management Services
Not Acceptable for: Enrolled Agents
Version: 8020

Working with independent contractors can save a business money and provide flexibility in hiring. But simply calling a worker an independent contractor doesn't make them one. This course shows you how to hire independent contractors and avoid mistakes that can lead to lawsuits or IRS fines. You'll learn how to determine who qualifies, how to document the relationship, how to safeguard your company's intellectual property, and how to handle an IRS audit. PLEASE NOTE: Not accepted for Enrolled Agents. All course material provided. No prerequisites. Course level: Basic.

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Course Information

Table of Contents
  • Benefits and Risks of Working With Independent Contractors
  • Tests for Worker's Status
  • How the IRS Classifies Workers
  • IRS Audits
  • State Payroll Taxes
  • Workers' Compensation
  • Health, Safety, Labor and Antidiscrimination Laws
  • Intellectual Property Ownership
  • Strategies for Avoiding Trouble When Hiring ICs
  • Procedures for Working With Independent Contractors
  • Independent Contractor Agreements
  • To identify the entity responsible for enforcing the federal minimum wage and hours laws
  • To recall the three main worker classification tests
  • To recognize the types of workers that generally qualify as statutory independent contractors
  • To recall why individuals might be selected by the IRS for an employment tax audit
  • To identify the strictest worker classification test
  • To recognize the categories of workers that may be exempt from workers' compensation coverage requirements
  • To identify the category of worker exempt from both federal overtime and minimum wage rules
  • To recognize what protects all original works of authorship
  • To recall the benefits of leasing employees
  • To identify the dollar amount at which backup withholding for an independent contractor must begin
  • To recall the characteristics of electronic contracts

PLEASE NOTE: CPE credit measurement is based on NASBA Registry and QAS guidelines of one credit for every 50 minutes. Credit calculation may vary in different states — check with your State Board of Accountancy. Unless otherwise noted in the specific course description, no advanced preparation is required in order to register or complete any PES CPE course. Use of materials or services provided by Professional Education Services, LP ("PES") are governed by the Terms and Conditions stated on PES' website www.mypescpe.com. PES provides these courses with the understanding that it is not providing any accounting, legal, or other professional advice and assumes no liability whatsoever in connection with its use. PES has used diligent efforts to provide quality information and material to its customers, but does not warrant or guarantee the accuracy, timeliness, completeness, or currency of the information contained herein. Ultimately, the responsibility to comply with applicable legal requirements falls solely upon the individual licensee, not PES. PES encourages you to contact your state Board for the latest information and to confirm or clarify any questions or concerns you have regarding your duties or obligations as a licensed professional.