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Old 01-20-2008, 08:46 PM   #2
Richard Monro Richard Monro is offline
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Joined: Dec 2004
Location: Scottsdale, AZ
Posts: 388
Michele,

Be very careful. What you call an independent contractor may well be an employee.

Consider this info from this website:
https://www.legalzoom.com/legal-arti...icle13606.html

In part it says:
"The IRS and many states have adopted common law principles to define an independent contractor. These rules focus primarily on the level of control an employer has over a service or product, meaning, whether or not the employer actually defines what is being done and how it will be accomplished.

Common law principles further define independent contractor status by method of compensation. If a person is on an employer's payroll and receives a steady paycheck, clearly that the person is an employee rather than an independent contractor, who likely receives payment in a different manner. Other considerations when identifying someone as an independent contractor may include:

If the worker supplies his or her own equipment, materials and tools

If all necessary materials are not supplied by the employer

If the worker can be discharged at anytime and can choose whether or not to come to work without fear of losing employment

If the worker control the hours of employment thus indicating they are acting as an independent contractor

Whether the work is temporary or permanent

Again, the nature of the work will help define the relationship. When work is considered integral to the business, it is more likely that the person is an employee. On the other hand, work that is temporary and non integral may imply independent contractor status."

This was a very sticky issue when I was running my business with employees across the country....and the IRS made a regular check that my independent contractors met the IRS ciriteria.
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