Employee or Contractor - Are You Classifying Them Right?

If not, you’re opening your dealership up to a world of hurt.

Just because your dealership calls someone an independent contractor doesn’t necessarily make them so in the eyes of the DOL.

Many dealerships are unaware that incorrectly classifying their workforce can lead to serious monetary repercussions, even lawsuits.

This worksheet will help illuminate the process to properly determine an employee’s status by looking at factors such as:

  • The skill and initiative required for the job
  • The permanency of the relationship
  • Whether the service rendered is integral to the employer’s business

Download the Employee or Independent Contractor? worksheet for auto dealers today.

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WORKSHEET

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Are Fred and Josh Employees or Contractors?

This worksheet will highlight two typical jobs at dealerships. Fred, the Dealer Trade Driver, and Josh, the “Dent and Ding” Man. This example will show you how to classify them and protect your dealership from DOL actions.

Wage laws do not apply to independent contractors. This makes it critical to correctly classify everyone performing services for your dealership.

If you fail to withhold taxes from an individual’s compensation due to incorrect classification, the DOL may come knocking. They can hold you liable for the full amount not withheld and for unpaid social security contributions.

Don’t make this costly mistake, download our Employee or Independent Contractor? worksheet for auto dealers today.

Find your compliance gaps before others find them for you.

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