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.