Hiring an Employee vs. a Contractor: The Financial Difference Explained

It starts innocently enough.

You need help. A neighbor does great work. A college student is available. A freelancer reaches out at just the right moment. So you bring them on, pay them for their time, and move forward.

And then, months later — sometimes years later — you find out that the way you classified that worker didn't line up with how the IRS sees it. And the cost of that misalignment isn't small.