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Can a person be an employee and an independent contractor at the some time?
Wiki User
∙ 13y ago
yes they can - a prime contractor holds the actual contract and then in essence hires a subcontractor to do some of the work. an independent contractor is not an actual employee of whoever is paying him for his work. so there is no reason one person can't be both and often they are
Wiki User
∙ 14y ago
Wiki User
∙ 12y agoA person should not be an employee and independent contractor at the same time - By the same employer. this is a red flag for the IRS to come and audit.
There are cases when an Independent Contractor can have a separate W-2 (employee) position, but it should not be for the same employer. Also in special cases, university professors or individuals working in specialized fields may work on the side as a consultant or Professional Expert. it is important that their IC work is limited and occurs in isolated incidences. An ongoing relationship may invalidate their status as an IC in the eyes of the IRS or EDD.
Wiki User
∙ 13y agoNot usually by the same employer. Go to the IRS.gov web site and use the search box for Independent Contractor (Self-Employed) or Employee?
Click on the below Related Link
Wiki User
∙ 13y agoYes!
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What is the best way to gift or give a powerful computer to an independent contractor and keep them independent tax wise of course if at all possible you would like to keep some strings attached?
The best way to give a to an independent contractor is to wrap it nicely put your contact information and then send it to him.
What is the definition of regular employee?
An employee that is hired by a company, worked for at least 90 days and upon hiring had no specific end date of employment. An independent contractor would not be a regular employee because they are under a contract where at some point in the future the job would be considered to be completed or the contract must be renewed. Other types of non-regular employees would include temporary and seasonal employees.
Are you required to attend weekly meetings as an independent contractor?
no, see belowIndependent Contractor (Self-Employed) or Employee?It is critical that you, the business owner, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. If you are an independent contractor and hire or subcontract work to others, you will want to review the information in this section to determine whether individuals you hire are independent contractors (subcontractors) or employees.Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be -An independent contractorAn employee (common-law employee)A statutory employeeA statutory nonemployeeIn determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.Common Law RulesFacts that provide evidence of the degree of control and independence fall into three categories:Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?Financial: Are the business aspects of the worker's job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no "magic" or set number of factors that "makes" the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination.Form SS-8If, after reviewing the three categories of evidence, it is still unclear whether a worker is an employee or an independent contractor, Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding (PDF) can be filed with the IRS. The form may be filed by either the business or the worker. The IRS will review the facts and circumstances and officially determine the worker's status.Be aware that it can take at least six months to get a determination, but a business that continually hires the same types of workers to perform particular services may want to consider filing the Form SS-8 (PDF).Employment Tax ObligationsOnce a determination is made (whether by the business or by the IRS), the next step is filing the appropriate forms and paying the associated taxes.Forms and associated taxes for independent contractorsForms and associated taxes for employeesMisclassification of EmployeesConsequences of Treating an Employee as an Independent Contractor If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker (the relief provisions, discussed below, will not apply). See Internal Revenue Code section 3509 for more information.Relief Provisions If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. To get this relief, you must file all required federal information returns on a basis consistent with your treatment of the worker. You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977. See Publication 1976, Section 530 Employment Tax Relief Requirements (PDF) for more information.Misclassified Workers Can File Social Security Tax FormWorkers who believe they have been improperly classified as independent contractors by an employer can use Form 8919, Uncollected Social Security and Medicare Tax on Wages to figure and report the employee's share of uncollected Social Security and Medicare taxes due on their compensation. See the full article Misclassified Workers to File New Social Security Tax Form for more information.References/Related TopicsProper Worker Classification (Audio, Transcript)Worker Classification WebcastA critical issue for all businesses is properly classifying workers as employees or independent contractors. The IRS's archived Tax Talk Today Webcast, "What's Hot in Employment Taxes: Independent Contractor or Employee?," focuses exclusively on worker classification issues.IRS Internal Training: Employee/Independent Contractor (PDF)This manual provides you with the tools to make correct determinations of worker classifications. It discusses facts that may indicate the existence of an independent contractor or an employer-employee relationship. This training manual is a guide and is not legally binding.Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding (PDF)Publication 15-A, The Employer's Supplemental Tax Guide (PDF) has detailed guidance including information for specific industries.Publication 15-B, The Employer's Tax Guide to Fringe Benefits supplements Circular E (Pub. 15), Employer's Tax Guide, and Publication 15-A, Employer's Supplemental Tax Guide. It contains specialized and detailed information on the employment tax treatment of fringe benefits.Businesses with EmployeesHiring EmployeesWho Is Considered Self-Employed?http://www.irs.gov/businesses/small/article/0,,id=99921,00.htmlJosh HarmatzVoyage Financial Group
What is a 1099 company?
A 1099 company is a business that is mostly in form of self-employment or an independent contractor. One can file for exemption of some takes under such a company.
What are some questions to ask when hiring a general contractor?
The main question that a person should ask when hiring a general contractor is if they have a license. Another great question is asking for references or a portfolio.
What is the difference between a subcontractor and sub-consultant?
Basically an employee is TOLD what to do, how and when to do it. Is paid by the time doing it and has taxes taken out.An independent contractor just completes the job, provides his own tools and does it when and how he wants it.For more details go to then scroll down to the links for more details on independent contractor defintionsThe UKThe situation concerning whether someone is an independent contractor or an employee has caused much debate in the UK courts. I have recently won a case involving legal argument on employee status. My arguments followed the principles outlined below.Under a contract of service a person agrees to serve another - under a contract for services a person agrees to provide certain services for another. A contract of service is normally referred to as a contract of employment.Contract of employment must contain three elements without which a contract cannot be regarded as a contract of employment:the contract must impose an obligation on a person to provide work personallythere must be a mutuality of obligation between employer and employeethe worker must expressly or impliedly agree to be subject to the control of the person for whom h works to a sufficient degree to make that person master.Personal Obligation to provide WorkIn Express and Echo Publications Ltd v Tanton[1999] IRLRThe Court of Appeal held that the power to send a substitute meant that this could not be a contract of employment. The irreducible minimum of a contract was for the worker to provide his services personally.However, where a contract contains a limited power to delegate, that does not lead to an inescapable conclusion that it is not a contract of employment.MacFarlane v Glasgow City Council [2001]IRLR7. EATAccording to the EAT in Macfarlane, the clause in Tanton allowing the worker to send a replacement was extreme. The worker in Tanton was not under any obligation to attend work. He was always entitled to send a substitute. In MacFarlane the worker was only entitled to send a replacement in the event that he was unable to attend work himself. Therefore the clause was of a far more limited effect and was not sufficient of itself to justify the conclusion that the contract was not a contract of employment.Staffordshire Sentinel Newspapers Ltd v Potter [2004] IRLR 752The EAT gave further guidance on the application of Tanton and MacFarlane. The critical question is what is the relevant express term; where there is no clear express term in writing then it may be necessary to look at the overall factual matrix in order to discern that term.The decision of the EAT in McFarlane v Glasgow City Council, that a contract did not cease to be a contract for personal service simply because, in the absence of an express contractual term dealing with personal service or the use of substitutes, there was, as a matter of fact, a right to substitute in a limited sense, was entirely consistent with the ruling of the Court of Appeal in Express & Echo Publications Ltd v Tanton that an express right to provide a substitute was wholly inconsistent with a contract of service.Mutuality of ObligationsThis means that for the duration of the contract both the employer and the employee must be under a legal obligation to each other. (Carmichael v National Power PLC [2000] IRLR 43) The employee is under an obligation to provide labour for which the employer is under an obligation to provide payment.ControlThis does not mean that the work must be carried out under the employer's supervision, it requires that the ultimate authority over the worker in the performance of her work resides in the employer, so that the employee is subject to the latter's orders and directions.I hope this is helpful.I live in Virginia. I had to fight to get my workers comp benefits. There were four criteria which classified me as an employee versus an independent contractor.1) I was told when to report to work2) I was told when to quit my day's work3) I was trained by the person who I worked for4) They had the ability to fire meIt's not necessary for the person you are working for to take out your taxes. This can already be agreed upon between you and your employer.If your employer fills out the invoices and you never do, chances are you are an employee.
Can an employer make you use your own insurance if you were injured on the job?
depends ..... are you an employee, a sub-contractor or engaged under some other scheme. also, have you signed a 'hold-harmless' agreement?
How does filing for unemployment affect your previous employer?
The states generally base their unemployment tax rate to employers according to the size of their payroll and their employees continued employment. A large turnover rate of employees will generally increase their tax rate. This is one of the reasons some employers deliberately misclassify the employee as an "independent contractor" to avoid their obligation to the state and the employees.
Does an attorney need malpractice insurance if he is under 1099?
The 1099 only represents that the Attorney is working on a contract basis (self Employed) rather than as an employee. If the attorney is in fact a self employed independent contractor then this likely means that no coverage is afforded by the employer. If this is the case, then it would be a good idea for the Attorney to get some Malpractice or Professional Liability Insurance so there will be coverage in the event of a malpractice suit. Otherwise the attorney will be out of pocket for any related expenses in the event of a claim. The 1099 itself has no bearing on the attorneys need for Malpractice or professional liability coverage. It only indicates that he or she is a sel employed independent contractor.
Does a subcontractor need workers compensation?
If he is a sub-contractor, probably not. If he is an employee, yes. Just in case, check with local employment laws. If he is working as a supervisor for your Co, supervising other subcontractors, it may well be hard to claim him as an independent contractor. Most states (and almost certainly the Feds), would find he is an employee in your control and not an independent sub contractor. (Another indicator - if he worked for you long enough and you fired him would he expect/try to claim unemployment comp?) Hence, he would be subject to WC (and the plethora of employee withholdings). WC most likely at the highest job class for which he is exposed to the risk of. So, if he's climbing on roofs, off the ground, going into ditches, etc. even occasionally, that would be his rate class. I know - sorry -
When can you hire independent contractors?
Well, If i were to make some major renovations to my kitchen, bedroom and garden as well then I'd have chosen three different independent contractors for each of the above, as these are three different sets of work that a single contractor may not be able to do. Another way to do this is, post this project on home improvement portal and get bids on the project, where you can choose the bid that fits your budget and obviously from a better contractor.
Negotiating a Landscape Contract?
Many people dream about the day they can finally get some much needed landscaping done on their property. For some people, landscaping is the gift of a lifetime. It can be something that saves a person much hassle and brings great value to any home or property. Before a person races to hire a landscaping contractor, however, he or she needs to be very clear about what it is he or she wants done. In addition, he or she needs to hire a contractor that is reputable and known for his or her work ethic. This article will discuss how a person can negotiate a landscaping contract, as well as other considerations one should make while going through the process of hiring a landscape contractor or company. First, a person should always make sure that he or she knows exactly what he or she wants before hiring someone. A person should visualize what he or she wants done in the yard. In addition, it is helpful for a person to clip out any pictures of trees or bushes or landscaping a person wants done on his or her property. Having a clear vision helps a person to tell a landscape contractor exactly what it is he or she wants. A contractor is much more likely to follow through with a person's wishes if those wishes are clear and to the point. In addition, it simply makes a contractor's job easier for him or her to know what a client wants and does not want done to his or her property. Second, a person should have a clear budget of how much he or she is willing to spend on a landscaping project. A person should communicate this budget clearly to a contractor, so the contractor knows to take the budget seriously and not go over it. A person should also say that if the contractor goes over the budget, the contract will not reimburse him or her for any extra labor or money spent on the project. By letting a contractor know this, a person eliminates any chance there may have to be a lawsuit filed after the landscaping is completed and done. In addition, letting a contractor know this shows that one is fully attentive of the process and cares about it. When negotiating, a client should never allow a contractor to walk all over him or her and remain strong.
