This guy is trying to claim that I am a contractor and not an employee, help please! :)?
This guy is trying to claim that I am a contractor and not an employee, help please! :) Thanks! I once found something on caselaw in Kansas or something stating that an employer cannot make someone an "independent contractor" just by having them sign a contract that states that they are "an independent contractor and not an employee". Please tell me if you know of any caselaw with something similar to that by Wednesday night, August 22nd, 2007. Thank you.
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A business owner doesn't take taxes out of your check, offer vacations, give sick leave, pay workman's compensation, make you sign a non-competition clause, or pay for your medical insurance if you're a contractor. He also cannot directly tell you how or where to get your job done or who else you can hire to help you if you're a contractor - he would be your customer, not your boss. A contractor is also usually paid by the job, not by the hour/day/week, etc. A contractor is expected to supply his own tools, equipment, and materials. An employee has many legal rights in the workplace, including being entitled to be paid overtime, being compensated for any work-related injuries, and cannot be fired for certain reasons. But a contractor makes his own hours, is responsible for his own work-related injuries (unless the property owner was somehow negligent), and a business owner can refuse the services of a contractor for any reason he wishes.
Check out the links I've provided to see other distinctions between the two kinds of workers. Take a good look at your job and if it seems like you have all the disadvantages of both worlds but none of the benefits of either, then it looks like he needs a little pow-wow with the IRS and your local labor board.
Sorry, someone lied to you. If you sign a contract saying you're an independent contractor, then you are. Period.
You don't need case law. Go to the IRS web site. They will give you the definition. Typically speaking you are NOT an independent contractor if your company pays for a significant amount of your work supplies (paper, computer, phone) and if you are required to be at a certain location for a certain amount of time (are you required to at an office for a specific period of time),
Hillary is incorrect. I worked in operations for a major publishing house for five years. We always had to deal with this issue - see IRS guidelines. The IRS does not allow an employer to over ride their guidelines via contract.
Sorry no case law, if you go to findlaw.com and do a search or lexis you should find something. Also, the IRS.gov site has an excellent definition of the difference between an independent contractor and employee.
You're right, the business can't just "declare" you an independent contractor- I have two working for me, and I had to fill out a twenty question form for NY state to prove they truly were not employees. In their case, they are both licensed professionals, have other clients, advertise on their own for other business, and have their own liability insurance.
It depends on the tasks you are performing. What the contract says doesn't mean much. There is plenty of case law on the subject. For example, if you have control of your hours of work, and you can perform your tasks in the manner you wish, you are probably a contractor. If the employer controls your progress and directs your work, you are probably an employee.
The IRS (Internal Revenue Service) has what is commonly referred to as 'The 20 Question Test' to determine if you are a contractor or an employee.
While interpretation is always an issue for some of the questions, generally if you fail 1 part of the 20 parts, the IRS may consider you an employee. This is NOT a hard rule however.
The IRS frowns on "independent contractors" generally speaking because they feel the Federal Government is somehow getting ripped off on matching employer taxes. That does not mean there is no such thing as an independent contractor - there is, but there are definitely Federal rules on who is and isn't a 'contractor'
Go to the IRS website and do a seach on Independent Contracting.
The 20 part test can be found here:
http://www.taxprophet.com/apps/active2/i...
If you believe you are an employee wrongfully categorized as an independent contractor, you can get your employer into a whole heaping amount of hot water by complaining directly to the IRS. The IRS will audit, and it's likely your employer will regret it.
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