|Are you classifying your workers as Employees or Independent Contractors correctly?|
PHBP is an employee welfare benefit plan under ERISA that only covers employees. Therefore, if you intend to provide health insurance to your workers through PHBP, they must pass the test for common law employees and you should report their income on a W2 form. Conversely, if you misclassify an individual as an independent contractor who is working in a PHBP covered category and that person is, under the applicable legal tests, an employee, contributions to PHBP may be due for work performed in that category.
The U.S. Department of Labor (DOL) has requirements that employers should adhere to when it comes to classifying workers as employees or independent contractors. You can read more about it by clicking here. The IRS has also issued guidance on the subject relative to the tax code. You can read more about it by clicking here
If you have questions about the status of a particular individual, you should consult with an appropriate, qualified professional, such as an attorney or tax expert.