You may decide your business can't afford to hire too many full-time employees, and you'd like to use the services of an independent contractor. With an independent contractor, you don't have to withhold and pay the person's income, Social Security and Medicare taxes.
While independent contractors do translate to lower payroll costs, be advised that the Internal Revenue Service scrutinizes the use of contractors very carefully. The IRS wants to make sure that your workers are properly classified and paying the government the necessary income and payroll taxes that are due.
To read the full, original article click on this link: How the IRS Classifies Independent Contractors | Entrepreneur.com
