b'TerminatedContractor:Inadowneconomy,youcutbackWhat Should I Do:yourworkforce,includingseveralcontractorconstructionGood: Conduct a quick review of those who work for you.In workmen.Onedecidestofileforunemployment.Whenthemost cases you will quickly be able to rule out concern except TWC investigates, it will determine whether you have properlyin a few cases. For the exceptions, examine the above factors characterized the workman.If you lose, the TWC will make youand make sure to maintain appropriate separation. Too often, an responsible for back taxes and interest (which you will have aindependent contractor will grow into an employee over time as hardtime getting back from the workman). Then, the TWC willthey become a more integral part of your business.tell the IRS and Attorney General. After their audits, you can find out how much back child support you should have withheld thatBetter: Create written job classifications for each position in your you are now responsible for!company including restrictions on the position.Make a written contract with all independent contractors that clearly lays out Contract Employee v. Independent Contractor: Dont mistaketheir status (but do not include a covenant not to compete, which a contract employee for an independent contractor. Contractis a clear sign of an employee).employees are still employees who are paid like any other employee and for whom you must deduct appropriate state andBest: In this case, best is really safest. If you characterize federal taxes. everyone who works for you in any capacity as an employee, except with the most obvious exceptions, there will rarely be any Accident: One of the few advantages to a business owner incause for concern. That said, it can result in an administrative characterizing people as independent contractors arises in theheadache. event of an accident. If you have a true independent contractor and they injure someone while working for you, there is less potential liability for you!Conversely, employees involved in accidents are the direct responsibility of the employer (unless they were working outside the scope of employment).16'