In this article in the Wall Street Journal we learn that the IRS is getting serious about the misuse of Independent Contractor relationships to avoid classifying certain workers as employees subject to all the rules under the Fair Labor Standards Act.
This is important for many funeral homes because most still treat preneed sales people as independent contractors when they really don’t meet the test.
Realizing that this will impact mostly small firms, the IRS is offering a quasi-amnesty in the form of a reduced fine. I suggest you look at this issue carefully. The cost of being found out of compliance is onerous to say the least.
For some guidelines on what the act has to say about independent Contractors go to this link: