votrechien - 9:27 pm on Dec 18, 2012 (gmt 0)
I don't know how sticky they are about it in the U.S. compared to Canada (although I'm sure it's similar) but here this is one of the sure-fire ways to raise the eyebrows of the CRA. You're not the first person to think "Gee...I could save a lot of money if I just hired them as a contractor!". When taking a business law class, there were some scary examples of businesses getting hit hard.
If you were considering doing this, I would think warehouse staff would be one of the hardest positions to even remotely coming close to being able to classify as a contract worker. The very nature of their work probably means that you need them to ship out packages on set time schedules and receive inventory on set time schedules, all of which is one of the biggest determinants if they are employees or not.