E m p l o y e e s v s .

I n d e p e n d e n tC o n t r a c t o r s

Many people believe thattheir employment status isvery black and white.

But what about this gray areawhere you aren’t sure if you are

an employee or if you are anindependent contractor?

Don't worry.

Either way, you are stillemployed.

The only difference iswhether you are self

employed or not.

According to the IRS,

"Doctors, dentists, vets, lawyers, accountants, contractors,

subcontractors, public stenographers, or auctioneers who are in an

independent trade, business, or profession in which they offer their services to the general public are

generally independent contractors.”

But what makes thesepeople independent

contractors?

Aren’t there people withthose professions that are

considered to beemployees?

For a better understandingof what makes someone

employed vs. self employed,simply keep reading!

If you want to know whatdefines an independentcontractor, or someone

who is self employed, youmay look to the Fair Labor

Standards Act

Fair Labor Standards Act isdivided into three maincategories

Fair Labor Standards Act isdivided into three maincategories

which include behavioral andfinancial guidelines, and the

type of relationship.

Behaviorally:

If the company tells the worker what todo, or even if they just have the right to

control what they do and determines howthe worker is going to do the job, theperson may easily be classified as anemployee rather than self employed.

Financially:

If a person regularly gets their paycheckfrom someone else, most likely they are an

employee, and not self employed. Anindependent contractor gets paid by thejob rather than by the time it takes to

complete said job.

RelationshipWise:

If the worker receives any type of benefitsor has a written contract then they aredefinitely not self employed. If the work

they perform is a key aspect of thebusiness, they are most likely employed by

that business.

Some other things that define someoneas an independent contractor include:

Some other things that define someoneas an independent contractor include:

Supplying their own equipment, materials, and tools;

Some other things that define someoneas an independent contractor include:

Supplying their own equipment, materials, and tools;

if they have the ability to choose whether or not to come towork without losing their job;

Some other things that define someoneas an independent contractor include:

Supplying their own equipment, materials, and tools;

if they have the ability to choose whether or not to come towork without losing their job;

whether they have the job temporarily or not;

and if they pick their own hours.

As you may be able to tell, the role ofthe worker, whether a standard

employee or self employed,

As you may be able to tell, the role ofthe worker, whether a standard

employee or self employed,

is never very clearlydefined by just one aspect.

Never should an employerjust assume the status of

any worker.

Never should an employerjust assume the status of

any worker.

If you do, you can be heldliable for employmenttaxes for that worker.

If you are a worker that believes you have been improperlyclassified as an independent contractor by your employer,

you should fill out theUncollected Social Security andMedicare Tax on Wages form

to figure out and report your share of uncollected socialsecurity and Medicare taxes.

If you are still confused about your status, or just have anyother questions not covered in this article, don’t hesitate to

give us a call today at

You may also visit us online at www.iStaffwise.com!

856-348-0040