Employer Resources

Mandatory Employment Forms

As an employer in Colorado you are required by law to have copies of the following 3 forms on file for all your employees.

Employee vs. Independent Contractor

It’s important for business owners to correctly identify whether a worker you hire is an employee or independent contractor, in turn, determining how to treat the payments you make to them.

IRS identifies 3 areas of control in determining if a worker is an employee or contractor.

Behavioral Control

Does the business have the right to control what and how the work is accomplished?

Financial Control

Does the worker have unreimbursed expenses?  What is the worker’s financial investment in tools and facilities? Does the worker make his services available to the relevant market? How does the business pay the worker? Can the worker incur a profit or loss?

Relationship of the Parties

Are there written contracts describing the working relationship? Are there employee-type benefits provided?  How permanent is the relationship? Are the worker’s services a key aspect of the business?

To read more see: IRS Topic 762