When Is an Independent Contractor Really an Employee?

From Kiplinger  — “Q.  My son works for a big tech company as a so-called independent contractor, but it seems to me that he’s really an employee in everything but title. He works only for that company, puts in very long hours and is closely supervised by company managers (albeit off-site). He doesn’t get employer-paid benefits, the firm expects him to pay self-employment taxes, and he won’t qualify for state unemployment relief if his contract isn’t renewed. This doesn’t seem right to me. What do you think?

A. It smells fishy to me, too. As you describe it, this relationship wouldn’t meet the IRS’s multipart test for legitimate independent-contractor status. Your son’s employer is running the risk that his job (and perhaps others at the firm) will be reclassified by the IRS as conventional employment, with penalties assessed for back employment taxes and perhaps overtime.

The federal government and class-action labor lawyers are getting aggressive on this issue….”

Read the full story at Labor Law: Independent Contractor or Employee?

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