By 1970, when the Great Migration ended, its demographic impact was unmistakable: Whereas in 1900, nine out of every 10 black Americans lived in the South, and three out of every four lived on farms, by 1970 the South was home to less than half of the countryâs African-Americans, with only 25 percent living in the regionâs rural areas.
Claiming an Employee as an Independent Contractor. If you have claimed an employee as an independent contractor, the IRS may hold you responsible for employment taxes for that worker; there are steeper penalties for willful neglect as well under Internal Revenue Code Section 3509.
The distinction between independent contractor and employee is an important one in the United States, as the costs for business owners to maintain employees is significantly higher than independent contractors due to the need to pay Social Security, Medicare and unemployment taxes on employees. Additionally, contractorization has been used as an indirect form of union-busting. 2  An independent contractor can itself be a business with employees; however, in most cases in the United States independent contractors operate as a sole proprietorship or single-member limited liability company.