The National Directory of Certified Public Accountants

Ask A CPA - Independent Contractors

Changes In The Law - Treatment As An Independent Contractor

Yes. Section 530 of the Internal Revenue Code provides an exclusion that pertains to a worker who is not treated as an employee. The exclusion mandates that: that the employer never treated the worker as an employee; did not hold out any other worker holding a similar position as an employee; filed form 1099 in a timely fashion for that worker; and had a reasonable basis for treating the worker as an independent contractor.

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