Get your taxes done using TurboTax

There are several issues here.

• Under common-law rules, anyone who performs services for your business is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.  Opus17 has several appropriate links. 
• Facts that provide evidence of the degree of control and independence fall into three categories:
  • Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
  • Financial: Are the business aspects of the worker’s job controlled by the payer? (These include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
  • Type of Relationship: Are there written contracts or employee type benefits (i.e., pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
• Bsch4477 Has an interesting attachment regarding misclassification as an independent employee that outlines a course of action.
  • Talk to your Employer. 
  • Get the IRS Involved. 
  • File Your Tax Return with IRS Form 8919. 
• I cannot give legal advice, so you will have to seek a tax preparer and attorney based on your own research.