Employers do not infrequently "mislabel" employees as independent contractors in order to avoid liability for payroll taxes.
Employers label employees as "independent contractors" as this would reduce overall liability for payroll taxes.
Independent contractors are not permanent employees, nor are they eligible for employee benefits. These employees who are not on the payroll of the company do not enjoy certain benefits which are given to permanent employees of the company.
Independent contractors provide goods or services under contractual terms negotiated with their employer. Independent contractors are not employees and are therefore exempt from most federal labor laws. People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers.
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