Classifying a worker as an independent contractor instead of an employee might seem like a simple administrative choice, but getting it wrong can expose a nonprofit to back taxes, penalties, and legal liability. In this episode, we sit down with Sarah Stephens of Cox Automotive to unpack how the IRS and Department of Labor actually evaluate worker classification, the factors nonprofits often overlook, and the steps organizations, as well as their board and management who may also face liability, can take to protect themselves. Whether you’re bringing on a consultant, a contract therapist, or summer help, this conversation will help you understand the legal line between employee and contractor, and why that matters for your organization.
Additional Resources References in this Episode
Webcast: Employment Practices Liability Insurance – What is it and does my nonprofit need this insurance policy?
Board Members and Personal Liability: Options for Nonprofits to Minimize their Risk
Proper Worker Classification in the Nonprofit Workplace: Avoiding Misclassification Issues