Independent Contractor or Employee? The Basics

Sklover Working Wisdom

Unlike the law firm’s other attorneys, Ira received no benefits, no paid vacations, no paid holidays, no sick days and no 401k. Ira didn’t see any difference between what he did and what the law firm’s associate attorneys did, and wondered why he was considered an “independent contractor,” and they were considered “employees,” and why he was not entitled to all of the benefits they were. What is an independent contractor?

what to do when your employer illegally treats you as a contractor

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A reader writes: My question relates to being a 1099 contractor for a consulting firm. I was under the impression that I would be working with the rights and privileges of an independent contractor. As an independent contractor, can they require this of me? In looking at the IRS website, I was under the impression if they control when/where/how I work, I am no longer a contractor but an employee.


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answers to your questions about the new unemployment benefits law

Ask a Manager

On Friday, major new unemployment benefits were signed into law — and they significantly expand who can collect unemployment, for how long, and how much you’ll receive. Here are the highlights of the Coronavirus Aid, Relief, and Economic Security (CARES) Act: • From now until July 31, everyone collecting unemployment will receive their regular state benefit, plus an additional $600 per week from the federal government.

2020 35

What Kind of Worker Are You? Job Classifications for Tax Purposes

Ms. Career Girl

For the most part, there are two types of workers — employees and independent contractors. Once you know, the difference between independent contractor vs. employee can come into play throughout your professional life. Are you an employee or independent contractor?

2020 130

what are the bare minimum benefits an employer needs to provide?

Ask a Manager

A reader writes: I have a question regarding employee benefits. What do you (or your readers) think are the absolute minimum benefits an employer should provide? I, of course, try to work with my clients to develop the most competitive benefits package they can afford. However, I’ve often run into the situation where the client believes they absolutely can’t afford even the most basic of benefits.

2018 30

3 Simple Ways to Start Paying Yourself as a Small-Business Owner


If a member of an LLC is hiring an independent contractor to handle a portion of their work, they cannot pay them a salary or an owner’s draw. LLC owners who use independent contractors frequently could use fillable 1099-NEC templates for this process. .

2021 130

Hiring Your First Employees: Making the Move from Small Business to Employer

Ms. Career Girl

In addition to budgeting for expenses like salaries and benefit contributions, you’ll also need to budget for employment taxes. Businesses need to withhold federal income tax, social security and Medicare taxes from employees’ paychecks.

2020 142

Is Your Small Business Breaking Labor Laws? 5 Mistakes to Avoid


But it’s still your responsibility to know which federal, state and local labor laws apply to you and to stay in compliance with them. Federal law doesn’t require you to give your employees meal or 15-minute breaks. Classifying Employees as Independent Contractors. Some small business owners think it’ll be easier and cheaper to classify their employees as independent contractors, so they don’t have to pay payroll taxes or cover benefits like disability and paid leave.

2019 109

Seasonal Unemployment Rules Working Moms Ought To Know

Competitive Resumes

It was such a relief when I learned that I could collect my unemployment benefits after all. I wanted to know if I’m eligible to receive unemployment benefits the months I’m off work. As reported by CNN, federal law gives states the option to offer benefits. Department of Labor website shows the criteria for unemployment benefits. Employed teachers are not qualified to take unemployment benefits during the summer.

2017 109

How to staff your start up!


Part-Time, Contractor, Temp, Casual, Full-Time or outsource EVERYTHING?? Whether this is from day one or later down the track, when you have determined it’s time to get help, it’s worthwhile taking careful considerations to your options and their immediate and longer term implications: Independent Contractors/Outsourcing. A very useful initial approach would be to hiring independent contractors or outsource instead of hiring employees.

2013 100

Consistent With Your Gender Identity: Dept of Labour Rule on Bathroom Use


A new final rule on sex and gender-based bias from the Department of Labour reaffirms principles that should already be familiar to you: it is not ok to discriminate against people for reasons of sex, gender or sexual orientation; and discrimination includes bias in hiring, promotions and pay, and in unequal working conditions or benefits. That is, as far as the Department of Labour is concerned, federal contractors cannot force transgender employees to use the wrong bathroom.

Protect Yourself: Laws Every Employee Should Know

Career Alley

All jobs are either exempt or non-exempt, as decided by the federal government. Contractor Law. If you are paid as a contractor, the company you work for must treat you as one. If you are an employee, not a contractor, the law says you must be paid as one and receive the same benefits, such as vacation time and insurance, as other employees. Employment is generally a necessary part of life.

2013 215

Increasing Disability Employment in the Workplace


Not only do employers gain dedicated and passionate employees, they often receive tax credits or breaks from the government, among other benefits. The first step is to recognize the many benefits to hiring people with disabilities. Also, any business that employs over $100,000 in federal contractors has an “aspirational goal” set by the government: 7% of the workforce within your business should be people with disabilities.

2015 117

“What is Joint Employer Liability?” Many Workers Have Two Employers, But Don’t Know It

Sklover Working Wisdom

He was considered an “independent contractor” and earned $35 per hour for his efforts, without benefits. He was told “No,” as overtime pay was given only to “employees” and that he was an “independent contractor.”. Thus, both your employment agency and the agency’s customer for whom you toil may be liable to you for payments, benefits and rights denied to you. Make a list of the benefit(s), payment(s) and rights you believe you are being denied.

2015 109

Why You Need to Make Disability Employment a Priority for Your Business in 2016


In 2014, new regulations for Section 503 of the Rehabilitation Act were put into place, requiring all federal contractors to maintain a 7% utilization goal for people with disabilities. In addition to the utilization goal, these contractors are also required to encourage employees to self-identify, keep records of disability employment and more. Department of Labor, to find local resources that could benefit your business.

2015 63

How to Align Cloud Tech to Elevate HR’s Strategic Business


Benefits of an Outsourced HR Model. I outsource housework to my housekeeper once a week, a contractor to help with our master bedroom remodel and the lawn service to tackle the jungle that is my backyard. TriNet’s technologies and services let you, the HR business partner get back to the business of being strategic and building an engaged and empowered workforce while they get their hands dirty in the trenches of HR, payroll, benefits administration and day to day.

2014 119

COBRA: The 21 Most Frequently Asked Questions

Sklover Working Wisdom

ACTUAL CASE HISTORIES*: We are frequently asked questions about COBRA, the federal workplace law that is probably utilized by more employees than any other. LESSON TO LEARN: If you are in danger of losing your employer-provided health care coverage, you are likely able to take advantage of the federal COBRA law, which provides a mechanism to obtain health care coverage continuation. Question 3: Who is entitled to benefits under COBRA? Question 20: I am a federal employee.


What Happens To Employers Who Do Not Pay Overtime?

Corn on the Job

The FLSA is the piece of legislation the federal government tries to use to prevent the average worker from getting cheated out of overtime pays. Requiring independent contractors to act as employees without employee pay benefits such as overtime. Sometimes an employer will tell a new worker that they will be classified as an independent contractor. This is done by the employer to avoid having to pay benefits and overtime.

2016 46

MEMO TO: New College Grads

Ms. Career Girl

Federal government jobs are located in all fifty states, not just Washington DC. Many of the work benefits we enjoy resulted from her personal work in Congress. Marillyn Hewson , CEO and President of defense contractor, Lockheed Martin. SUBJECT: Work responsibly. It’s that time of year when college seniors are looking forward to receiving their diplomas after four or more years of time consuming and costly schooling.

Seven Short Q&A’s on Saturday

Sklover Working Wisdom

Question 1: Can the clients of an independent contractor use the subcontractor that was used by the independent contractor after the subcontractor has ended the independent contactor/subcontractor relationship? . I am concerned this will have a negative impact on my Unemployment Compensation weekly benefit rate since I will be listed as a part-time employee at $14 per hour. The Short Answer is “It all depends on the terms of the particular 401k Benefit Plan.”

2012 109

Five Short Q & A’s on Saturday

Sklover Working Wisdom

I’ve reported this to the federal Equal Employment Opportunity Commission (EEOC), and the Louisiana Office of Human Rights, to protect my rights. However, when employees submit complaints to federal or state discrimination agencies employers usually limit what they offer in settlement to what they believe they may be directed to pay. Question 4 - Job Offer Withdrawn: I was offered a job for six months as an independent contractor, but that offer was rescinded for no reason.

2011 116

Employment Class Actions Survive Despite Wal-Mart Ruling


Compensaton and Benefits. A day after the decision, a federal judge in New York ruled that about 600 employees of Tyco International Ltd unit SimplexGrinnell can sue jointly on their claims that they were underpaid. On June 29, a federal judge in Florida denied Starbucks Corp.’s That same week, a federal judge in California denied trucking company C.R. » Independent Contractors Are Again Front-And-Center The U.S. Be our Friend.

2011 46

Going Back To Work With A Disability

Career Realism

Workplace facilities like adaptive office equipment and furniture, wheelchair or a motorized scooter can also greatly benefit disabled employees. Employee Benefits. Make sure that your employee is able to retain his health and disability insurance and derive their benefits without having to undergo long troublesome processes. Going back to work with a disability can be daunting, but it can also be looked at in another way.

2014 63

How Your Break Room Make or Break Your Organizational Culture


There are no federal or state laws forcing companies to provide employees with a place to recess in and there is nothing like that on the horizon. Workers who really need a break tend to wander outside for sunshine or even a stroll in the rain, two things no contractor could accurately replicate indoors. Many companies offer workplace perks and benefits like free lunches, drinks, snacks, and even the after hours happy hour.

Justice Department Sues Nation's Largest Mortgage Insurance.


Compensaton and Benefits. After investigating the complaint, HUD issued a charge of discrimination and referred the case to the Department of Justice after the complainant elected to have the case heard in federal court. The federal Fair Housing Act prohibits discrimination in housing and mortgage lending based on race, color, religion, national origin, sex, disability and familial status. » Independent Contractors Are Again Front-And-Center The U.S.

General Release Woes

Evil HR Lady

Two, that they can't come back as a contractor in a similar role. The second prohibition I listed above was to prevent you from coming back in a contractor role. If you come back as a contractor 3 months after I lay you off, you can argue that you really are an employee and your job never was eliminated because, look! Employees have rights under federal and state laws that contractors do not. I was recently laid off with 60% of my department.

2009 109

Companies hiring in August 2010

Resume Bear

While they are a relatively young company, the have strong experience and offer amazing benefits to all their employees. provides the professional services and IT solutions needed to prevail in today’s defense, intelligence, homeland security and federal civilian government arenas.

2010 171

“The Foreign Corrupt Practices Act – A Primer for Employees”

Sklover Working Wisdom

based defense contractor headquartered in Dallas, Texas, they were assigned to road building projects on the outskirts of the oil drilling area outside the northern Iraqi city of Irkuk. included a shipment of currency, Defense contractors really had no choice but to give “gifts” in this way; local custom and culture made it an absolutely necessary practice in order to get things done. . federal law that every employee who works for an employer doing business outside the U.S.

2013 109

General Release Woes

Evil HR Lady

Two, that they can't come back as a contractor in a similar role. The second prohibition I listed above was to prevent you from coming back in a contractor role. If you come back as a contractor 3 months after I lay you off, you can argue that you really are an employee and your job never was eliminated because, look! Employees have rights under federal and state laws that contractors do not. I was recently laid off with 60% of my department.

2009 100

EEOC is reconsidering their policy regarding Criminal Background.


Compensaton and Benefits. Solomon is the co-chair of the federal interagency Reentry Council’s staff working group. Shriver, III, Senior Policy Counsel for the Office of Personnel Management, told the Commission that, contrary to what some believe, having an arrest or conviction record does not automatically mean that a person can not work for the federal government. Federal regulations permit agencies to consider each applicant’s unique situation. Be our Friend.

2011 43

why it’s complicated for your employer to let you work from another state

Ask a Manager

My boss says that to work remotely, I’d need to become a contractor. My boss is indicating because our company is not registered to do business in this other state I would have to convert to a contractor. However, you can’t just convert to independent contractor status without changing some fundamental things about your role. According to a coworker, my boss does not want to pay the increased rates and is considering having me work as a contractor in order to avoid that.

HireCentrix Forum :: Topic: Employers and Workers Comp: The Real.


Compensaton and Benefits. If they’re successfully prosecuted, employees who commit workers’ comp insurance fraud – working while receiving benefits, faking injuries, getting hurt in a weekend misadventure and claiming it happened at work – typically pay anywhere from $2,000 to $5,000 in penalties. They misrepresent full-time workers as independent contractors, or misrepresent workers as desk employees when in fact they perform relatively hazardous tasks. Be our Friend.

2012 40

HR LunchBreak: Affecting the VALUE of Your Workforce


Compensaton and Benefits. Once employees are onboarded, HR can also affect the process for performance management and review, compensation and benefits, ongoing training and mentorship, and other employee/workforce initiatives. This collapse was the largest since the Federal Reserve began tracking household wealth after WW2 From August 2007 to October 2008, an estimated 20%, or $2 trillion, disappeared from Americans’ retirement plans. Be our Friend.

2011 54

Tired Of The Same Old Same Old? Try A Franchise!

Career Realism

ended abruptly after his division’s largest customer, a military contractor, pulled its business once the federal government imposed massive across-the board cuts as part of “deficit reduction sequestration” in early 2013. While Clausen was confident about his mechanical abilities — “I can put anything together” —when it came to the other aspects of running a business, from bookkeeping to managing payroll and benefits, he felt less sure of himself.

2015 64

Would You Give Your Employees All Your Money?

Water Cooler Wisdom

The company has retained an accountant and HR firm to vet its practices and ensure that it is operating according to state and federal employment laws. We may restrict the model to the core team at some point, but right now we’re experimenting with extending it to some of our independent contractors and it’s working well,” Sims says. “We Profit sharing is the new black. But one company, software training firm Agile Learning Labs, has taken it to the extreme.

2012 52

Want to litigate in private? Opt for arbitration


Compensaton and Benefits. As one federal court recently put it, “the public at large pays for the courts and therefore has an interest in what goes on at all stages of a judicial proceeding.” Mike has prosecuted and defended more than 300 employee defection and recruitment matters, obtaining and defeating injunctive relief in at least 27 different state and federal courts, in addition to dozens of arbitration actions before the National Association of Securities Dealers.

2011 48

Candidates will soon be in Control


Compensaton and Benefits. » Hell hath no fury like a government agency scorned Misclassifying workers as independent contractors now carries an even steeper price.California now has the nations most punitive laws against worker misclassification. This collapse was the largest since the Federal Reserve began tracking household wealth after WW2 From August 2007 to October 2008, an estimated 20%, or $2 trillion, disappeared from Americans’ retirement plans. Be our Friend.

Companies hiring in August 2010 | Resumebear Online Resume

Resume Bear

While they are a relatively young company, the have strong experience and offer amazing benefits to all their employees. provides the professional services and IT solutions needed to prevail in today’s defense, intelligence, homeland security and federal civilian government arenas.

2010 100

wee answer Wednesday — 7 short answers to 7 short questions

Ask A Manager

Being paid as a contractor when I’m treated as an employee. I recently came across the following information in one of your blog posts: “Your employer can’t pay you as a contractor while treating you like an employee. If your employer controls when, where, and how you work, the government says you’re an employee—and your company needs to pay your payroll taxes and offer you the same benefits it offers to regular employees.”

2013 57

listing a medical marijuana clinic as an employer, excluded from a team lunch, and more

Ask a Manager

While what I do is legal under the laws of the state of California, it is illegal under federal law and would also be illegal for me to do the same thing in Oklahoma. Coworkers are acting like it’s a big deal that I’m using our educational assistance benefit. This program was explained to me as a benefit of the job, and was one of the main reasons I decided to accept the position. There are 10 people in my team with 4 contractors, including me.

is it normal to complain about coworkers behind their backs, I opened a love letter to a volunteer, and more

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I’m an independent contractor being treated like an employee. I was first hired as an independent contractor and didn’t work in the office, only did off-site projects. There was one other employee with the same job description and independent contractor status. However, when I run out of my set office work to do, instead of leaving, they want me to train with one of their full-time employees, who is not an independent contractor.

my boss is verbally abusive and won’t pay me

Ask a Manager

We’re still independent contractors. This guy is violating all sorts of labor laws: It’s illegal to pay you as independent contractors when you’re actually employees, and he owes penalties and back taxes for doing that. If you want, you can also add this in: “In addition, it looks like the company has been mishandling our employees status — according to federal law, we should have been being paid as employees, not independent contractors.

Wage 20

Unemployment Extension Update

Corn on the Job

If your unemployment insurance benefits have been exhausted before the passing of this bill, you WILL be eligible for additional weeks of unemployment benefits. Those looking to receive a jumbo lump sum payment dating back to when benefits were exhausted will be mildly disappointed. Don’t frown too hard, your benefits will begin immediately moving forward. Do you have questions on unemployment benefits, or any horror stories to share?

2009 52