{"id":36,"date":"2009-03-15T08:49:13","date_gmt":"2009-03-15T16:49:13","guid":{"rendered":"http:\/\/think180.com\/mer-blog\/?p=36"},"modified":"2009-03-15T08:49:13","modified_gmt":"2009-03-15T16:49:13","slug":"is-a-contractor-an-employee","status":"publish","type":"post","link":"https:\/\/managingvendors.com\/?p=36","title":{"rendered":"Is a Contractor an Employee?"},"content":{"rendered":"
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\u201cIf a contractor works like an employee, and is treated like an employee\u2026\u201d<\/em><\/p>\n

Independent Contractor status and reporting to the IRS comes into sharp focus when a client directly engages an individual worker, or consultant, to perform work on a project, or in a continuing role. It can also be a concern when engaging a smaller provider (such as an LLC), where a number of people are assigned full-time to a client, and work onsite.<\/span><\/p>\n

The IRS uses criteria to determine if a vendor or individual is classified as an independent contractor or is deemed to be an employee of the client.\u00a0A general rule is an individual is classified as an independent contractor if the client has the right to control or direct only the result of the work<\/em><\/span> and not the means and methods of accomplishing the result<\/em><\/span>. Under common law, anyone who performs services may be deemed an employee if the client has the right to control what will be done, where<\/em><\/span> it will be done and how<\/em><\/span> it will be done. <\/span><\/span><\/span><\/p>\n

But there is more. And the risks of ignoring these IRS requirements can be great, including fines and payment of back taxes and benefits.\u00a0How can clients\u00a0ensure that the outside resources they engage are independent, and\u00a0avoid exposure and risk of costly surprises from IRS audits?<\/span><\/span><\/span><\/p>\n

It is no longer the famous “20 Questions”. The new criteria are simpler, more straightforward, but more open to experienced interpretation. Think180 has summarized the requirements in an article, and included links to the latest IRS materials. <\/span><\/span><\/span><\/p>\n

Read and download the article here.<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

How does a client know if a worker, hired in as a contractor, will pass the test by the IRS as and Independent Contractor? There are new factors and ways of assessing this that clients need to know to avoid costly exposure.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[179,9,18,21,24],"tags":[25,33,34,45,46,47,226,53,54,65,69,70,71,77,86,88,92,94,95,96,103,109,112,113,117,121,148,154,155,158,159,169,178],"class_list":["post-36","post","type-post","status-publish","format-standard","hentry","category-contracts-agreements","category-handling-corrections-and-changes","category-selecting-and-engaging","category-think180","category-vendor-competencies","tag-20-questions","tag-behavioral-control","tag-benefits","tag-classifying-employees","tag-classifying-independent-contractors","tag-client-vendor","tag-communication","tag-contractor-or-employee","tag-contractor-vs-employee","tag-determination","tag-employee","tag-employee-or-contractor","tag-employee-vs-contractor","tag-financial-control","tag-ic-status","tag-independent-contractor","tag-insurance","tag-internal-revenue-service","tag-irs","tag-irs-classification","tag-like-an-employee","tag-managing-vendor","tag-misclassification","tag-nda","tag-non-disclosure","tag-outsourcing","tag-self-employed","tag-status","tag-strategic-vendors","tag-taxes","tag-taxes-for-independent-contractors","tag-type-of-relationship","tag-worker-status"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/managingvendors.com\/index.php?rest_route=\/wp\/v2\/posts\/36","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/managingvendors.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/managingvendors.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/managingvendors.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/managingvendors.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36"}],"version-history":[{"count":0,"href":"https:\/\/managingvendors.com\/index.php?rest_route=\/wp\/v2\/posts\/36\/revisions"}],"wp:attachment":[{"href":"https:\/\/managingvendors.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/managingvendors.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/managingvendors.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}