Article in Forbes from Nov 15, 2012 about IC's. Also has good information on defining them, and the consequences of classifying your workers wrong. Thought it might be a useful article for some.
Increasingly, the IRS, Department of Labor (DOL) and state governments are swapping information. A GAO report claims the IRS is losing billions, while a DOL study says up to 30% of employers misclassify workers. But change is on the way. The DOL announced in 2010 that it would issue regulations requiring companies to write a classification analysis for all workers, including independent contractors.
These proposed regulations are expected to require companies to explain why the worker is or is not covered by the Fair Labor Standards Act. Companies may have to show each worker a copy, leading many to refer to these rules as “Right to Know.” There’s a similar theme in the Fair Playing Field Act of 2010 (H.R. 6128, S. 3786).