Determining the Status of an Independent Contractor and Taxes - Essay Example Avoiding taxes is not the primary goal of an independent contractor but they know if they are classified as employees they suffer some consequences. Some of the consequences one suffers are that they might not be hired by the hiring firm since they these firms will be forced to pay additional expenses of treating them as employees. The aims of the firms to maximise their profit and to ensure they achieve their goals, they have to ensure that they minimise their operational expenses. For this case, if an independent contractor is classified as an employee he will never be hired by the hiring firms. (Fishman, 2006) The other reason as to why the independent contractors do not need to be classified as employees is because they will add additional tax burden to themselves by being subjected to tax. Their pay will be deducted, something they would not be experiencing if they were independent contractor. (Fishman, 2006) According to Fishman (1997), the U.S Bureau of Labour Statistics shows that in U.S.
termining the Status of an Independent Contractor and Taxes Essay