If you are an independent contractor is really the staff?
Q. my son in a large technology company as a so-called independent contractors, but in my opinion, he is really everything but the title employees. He only for that company, put in a very long time, and through the company’s management under close supervision (although remote). He did not get benefits paid by the employer, the company expects him to pay self-employment tax, if his contract is not renewed, he will not be eligible to apply for state unemployment benefits. This does not seem right to me yet. What do you think?
A. it smells fishy to me. When you describe it, this relationship will not meet the IRS to legally independent contractor status of many tests. Your son’s employer danger faced by his work (and perh AP in the company, etc.) will be IRS reclassified as traditional employment, in order to assess back employment taxes, perhaps overtime penalties.
The federal government and the class action lawyers work more and more aggressive on this issue. In the final case before the Supreme Court likely will, a federal appeals court in San Francisco ruled that a few days ago, in California and Oregon, who the company believes that independent contractors, FedEx employees in virtually every driver is really a way. Some drivers to car-sharing service, Uber and Lyft also challenge its position as an independent contractor.
This problem will not disappear, because many enterprises, especially high-tech start-ups, fabrications law to differentiate their labor costs remain low, capping them at a threshold number of ficial staff, for a variety of federal programs, such as family leave and health care coverage requirements trigger.
Has much to recommend a truly independent contract, both the employer and the contractor himself. Many workers value the freedom to set their own time and place of work, service several different clients, and to deduct their business expenses from their income.
However, in my experience, the company fulfills its employees salaries and attractive benefits, coupled with the safety and legitimate rights and interests of real employment and reward good performance and lower turnover.