Independent consultant? Determining an independent

Independent consultant — it’s an important term to understand. Are you an independent consultant or are you actually an employee of your supposed client? If you’re working full-time for a client, working their hours and using their offices and tools, there’s a good chance you’re actually an employee, not an independent consultant.

The IRS has a guide to help you determine whether you’re an independent consultant (1099 worker) or an employee. It’s important to understand the distinction. Although the tax guys may go after your client for payroll taxes, they may also audit you for all the business tax write-offs you’ve been using. Make sure you’re doing the right thing. Talk to an accountant, lawyer or the IRS for help in determining your status.