As corporate America downsizes more and more workers are becoming part of the contingent workforce which moves from one short-term assignment to another.
Many downsized managers finding short term assignments think of themselves as consultants.
As more and more downsized workers come to realize that such work can lead to full-time job offers, the number of such consultants surely will grow. If you are one of those people who thinks of themselves as a consultant, but merely has continued doing your old job with your former employer on a per diem basis, be aware the IRS has very specific guidelines for differentiating between Employees and Independent Contractors. That s IRS-talk for consultants or contract workers. The distinctions, outlined in IRS Publication 937, are significant when it comes to taxes and retirement planning. The consequences of finding out, after the fact, that you have been improperly classified can be very troublesome.