Brightmine HR & Compliance Center Employment Law Guide 7477

Summary

• Author(s): Brightmine Editorial Team

  This section should be reviewed in conjunction with our in-depth federal coverage of this topic.

  Determining Whether a Worker Is an Employee or an Independent Contractor

  Due to potential tax consequences and, in the case of construction companies, the potential for criminal penalties the correct classification of workers is vital. State statutes, jury instructions and other informal guidance can help employers determine whether a worker is an employee or an independent contractor.

  Agency Guidance

  The New Mexico Taxation and Revenue Department has issued informal guidance (http://www.tax.newmexico.gov/Individuals/independent-contractors-vs-employees.aspx) as to whether a worker is an employee or an independent contractor. The Department defers to the criteria of the Internal Revenue Service (IRS) in determining who is an employee and who is not. See Types of Employers and Workers > Independent Contractors > Under the Tax Code.

  However, there is an ...