How to Classify Your NJ Employees and Independent Contractors

Classifying workers as employees or independent contractors is an important decision for businesses in New Jersey, as it determines various legal obligations, tax implications, and potential liabilities. Here’s a guide on how to classify your workers in compliance with New Jersey law:

Steps to Proper Classification
  • Review Job Duties: Evaluate the nature of the work performed and the degree of control exerted by the business over the worker.
  • Document Agreements: Clearly outline the terms of the working relationship in a written contract, specifying the worker’s status as an employee or independent contractor.
  • Consult Legal Counsel: Seek guidance from legal professionals experienced in employment law to ensure compliance with New Jersey regulations.
  • Regular Review: Regularly reassess worker classification to account for changes in job duties or legal requirements.