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Myth #6: Employees Should Always Be Independent Contractors

The Myth: I can control my costs for  required labor by treating all of my workers as independent contractors.

The Reality: An independent contractor is always another  business separate from your business,
and is never an individual person. The independent contractor  may have only one "employee" but that person is a part of the independent  contractor business. A contract with an individual person is always by law an employment agreement and the hired person is also by definition an employee. Treating individuals as independent  contractors can cause substantial costs when they are re-classified as employees.