To classify employees correctly can be a challenge. Employees are classified as either
- exempt from overtime, and are normally paid salary, or
- nonexempt, and are paid hourly with overtime for over 40 hours in a workweek.
Classification can be difficult. There are also independent contractors and booth renters, which are not legally “employees.” If there is a disagreement between you and the IRS in how you classified a new hire, a court will decide how your employee will get classified.
Get our infographic to help you easily know the difference between an independent contractor and an employee.