Initially, we note there are tax and payroll reporting implications arising from an association’s decision to hire employees as opposed to independent contractors. These are issues that are best addressed by association’s CPA. Additionally, there are insurance and liability implications. If any persons are allegedly injured or property damaged by an employee of the association, there is a greater likelihood the association will be held liable for that injury or damage than if the damage or injury was caused by an independent contractor. Merely having an agreement entitled “Independent Contractor Agreement” is not sufficient to establish ones status as an independent contractor; the authorities will look to several factors in making this determination.

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