What criteria determines whether or not IC
Posted By: IC on 2008-02-15
In Reply to: If IC lets co. use her as employee, setting sched, - controlling her time, saysing how to do work, if
Issue of Correct Classification
A person working for a business as an employee or independent contractor is an important distinction. The first question is who determines if a person performing work for a business is an employee or an independent contractor? Answer: the IRS. The second question is how will a business who misclassifies an employee as an independent contractor get caught? Answer: IRS audit of the business, unemployment claim filed by a former worker, or a claim filed for worker's compensation benefits filed by a worker, a former contractor filing a Form SS-8 (Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income tax Withholding) to mention a few. The third question is what are the consequences of being caught and having an independent contractor reclassified as an employee? Answer: the employer becomes responsible for both the employers and employees FICA (15.3% of gross wages), FUTA (currently $56 per year per employee), as well as the federal income tax (20% of gross wages). The IRS may also bring in the state and as a result, the employer may also become liable for the state income tax, as well as state unemployment and worker's compensation. Employer's may also face a penalty equal to the amount of the back taxes owed. Likewise, the employer will owe interest on all back taxes from the due dates. And, the business may be required to support the injured person for the rest of their life.
Common Law Rules
The following are a list of 20 questions the IRS uses to determine if a worker is an independent contractor or employee. The answer of yes to any one of the questions (except #16) may mean the worker is an employee.
Is the worker required to comply with instructions about when, where and how the work is done?
Is the worker provided training that would enable him/her to perform a job in a particular method or manner?
Are the services provided by the worker an integral part of the business' operations?
Must the services be rendered personally?
Does the business hire, supervise, or pay assistants to help the worker on the job?
Is there a continuing relationship between the worker and the person for whom the services are performed?
Does the recipient of the services set the work schedule?
Is the worker required to devote his/her full time to the person he/she performs services for?
Is the work performed at the place of business of the company or at specific places set by the company?
Does the recipient of the services direct the sequence in which the work must be done?
Are regular oral or written reports required to be submitted by the worker?
Is the method of payment hourly, weekly, monthly (as opposed to commission or by the job?)
Are business and/or traveling expenses reimbursed?
Does the company furnish tools and materials used by the worker?
Has the worker failed to invest in equipment or facilities used to provide the services?
Does the arrangement put the person in a position or realizing either a profit or loss on the work?
Does the worker perform services exclusively for the company rather than working for a number of companies at the same time?
Does the worker in fact make his/her services regularly available to the general public?
Is the worker subject to dismissal for reasons other than non-performance of the contract specifications?
Can the worker terminate his/her relationship without incurring a liability for failure to complete the job?
Complete Discussion Below:  marks the location of current message within thread
The messages you are viewing
are archived/old.
To view latest messages and participate in discussions, select
the boards given in left menu
Other related messages found in our database
This issue IS... Do you want your QA that determines your errors, including punctuation, Indians.???
I have no problem maintaining quality and agree that 98% and above is acceptable and definitely quality what we all strive for, I just am offended that someone I cannot even understand and they cannot understand me, being the ones doing the quality checks on my work. That is my issue with it. You have not been there long enough. I was there a few months before they started bothering me. The problem was that I would tell them No, I cannot do the stat right now as I am logging off and they would still keep asking me. What part of NO in the English language is that hard to understand. Good luck with that.
Not basing that criteria on a job application...Good grief! nm
s
Annual performance review criteria--hope it helps!
SC,
Good luck with getting the raise you deserve! I posted a couple days ago regarding my experience with my recent annual review and raise I received. With my company, the annual review is scored with 5 pts being the highest possible to achieve in 6 categories; quality, line requirements, attendance, % to QA, helping out, and communication. They award 1/4 cent/line if you have 4.5+ and 1/2 cent/line with a perfect score of 5/5. They only use the last 6 months of data to calculate total score.
In my experience, e-mails do not work! They are too easily lost and are forwarded to God knows who! Call your immediate supervisor and get their opinion and who to contact with this proposal. Good Luck!
Feel free to post your questions here. The only criteria we ask that posters follow
is not to post other people's personal names, email addresses, telephone numbers, and no client specific information. Regarding crass posts by others, this is an anonymous board, which means anyone can post without identifying themselves. We do moderate the site for content, but I would advise ignoring the trolls and negative information and zone in on the positive.
Thanks,
Administrator
MTStars
|
