Forums
Employee vs. Independent Contractor
Legal Forum
Employee vs. Independent Contractor
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
What does your company do to differentiate an employee from an independent contractor. Do you have different offer letters, IT and building access, do contractors participate in company sponsored even
0
Cat:Topic ForumsForum:ForumId54
Cat:Topic ForumsForum:ForumId54Discussion:DiscussionId36170
Forums » Topic Forums » Legal Forum » Employee vs. Independent Contractor
|
Employee vs. Independent Contractor
posted at 10/5/2009 7:53 AM EDT
|
Posts: 42
First: 12/15/2005 Last: 10/5/2009 |
What does your company do to differentiate an employee from an independent contractor. Do you have different offer letters, IT and building access, do contractors participate in company sponsored events. What are the legal implications and/or risks. |
|
|
Employee vs. Independent Contractor
posted at 10/6/2009 3:33 AM EDT
|
|
Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
ICs and employees are not differentiated by the companies they work for, they are differentiated by the laws of the land. The following are very general legal definitions of ICs and employees.
Independent Contractors: * are paid via accounts payable * provide and use their own tools and equipment (including lapotops, printers, and phones, ete.) * are not given employment offer letters by their client organizations * do not participate in their client organizations' benefits or PTO plans * are not supervised by employees of their client organizations * do not perform "core business" work for their client organizations * do not derive more than 30% or so of their total income from any one client organization Employees: * are paid via payroll * are supplied with tools and equipment by their employers * may participate in their employers' benefits and PTO plans * are supervised by their employers * are responsible for performing their organizations' "core business" work * may be provided with employment offer letters by their employers For more specific information about employees vs ICs, visit the federal DOL and the IRS websites. While penalties for violating DOL and IRS employee vs IC laws can be absolutely HUGE, if you're in compliance with those laws, I don't see that there's any risk of a penalty if you invite your ICs to a company-sponsored employee event. |
Forums » Topic Forums » Legal Forum » Employee vs. Independent Contractor
