Human resources tends to be a reactive field rather than proactive. In most cases, business owners don't look for an HR solution until they realize they have an HR problem. But in most of those same cases, a little bit of proactive planning would have prevented a whole lot of reactive grief.
With that in mind, here are seven of the most common HR blunders that small businesses commit — and steps you can take to avoid them.
1. Not Knowing the Difference Between an Employee and an Independent Contractor
I can't tell you the number of times I've heard a business owner describe a member of their workforce as "a 1099 employee."
That description is an oxymoron. A worker can have either "1099" status or "employee" status, but they can't have both.
The "1099" designation refers to the IRS form that businesses use to document payments made for (among other things) "services performed by someone who is not your employee" (emphasis added). Those services are performed by an independent contractor, in other words.