Independent Contractor vs. Employee Controversies Looming

With the current economic malaise, more than a few companies are considering the significant savings that hiring independent contractors rather than employees can bring. But can such hiring practices really bring savings? Senator Obama, in introducing legislation on this topic, estimated savings at a whopping 30%. But are these companies really saving? Or are they the victims of wishful thinking, ultimately posing a trap that can bring tax and legal consequences of staggering impact? In this podcast, Scott Drake interviews Rob Wood (author of Legal Guide to Independent Contractor Status, 4th Edition 2007) over the differing legal standards at play in this increasingly important morass. Considering the seemingly small ways in which worker status issues can arise and the interrelationship of these rules, it can be like dominoes waiting to fall.