Hiring independent contractors can save money and resources, but misclassifications can lead to costly fines. “Avoiding hiring errors will save time and money that would otherwise be spent on various fees (ex. legal, back pay, taxes). The main area of concern is classification,” according to recruiting software vendor, BrightMove.com. “Misclassifying those working as employees into the category of contractor is a simple mistake with a complicated resolution.” Some good information on classifications, the IRS, and penalties.