How do I determine if someone is an independent contractor or an employee?What is section 125?

How do I determine if someone is an independent contractor or an employee?

Most State Labor Departments have written criteria to determine if someone is a contractor or an employee, and they should be specifically checked; however, here are some of the more significant indications that an individual is an employee and not an independent contractor: They have their own federal employer identification number. They have control over…
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What is section 125?

Section 125 was regulated by both the Department of Labor (DOL) and the Internal Revenue Service (IRS), allows employees to contribute premiums for medical coverage on a pre-tax basis. Commonly referred to as a "Cafeteria Plan," Section 125's can produce huge fines and tax penalties becoming a major liability if not installed and maintained properly.
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