Originally posted by seacapt
BTW Whenever I hire day labor I pay them very well for what they do . I as the business owner have to pay insurance , advertise , set up jobs , order and pay for parts and materials , supply tools etc. etc. etc. It's called overhead and when this individual told me that he was doing the work while I was making the money (I was working right next to him most of the time) it fealt like I got kicked in the balls!
Look I understand your frustration, and don't believe what he was trying to do is right..problems is people are trying to survive in a corporate caused bad economy..
now a bit of facts.. IF you supply the tools and determine his performance without contract and pay him by the hour he is, in fact of law, an employee AND should go on the books as such. you are libel for all the supplemental taxes ect.. Gets a bit more complicated so I posted a link of "guidelines"
it wouldn't surprise me that people many have treated as independent are in fact "employees"..
Personally I don't really agree w/ it but.....
Employee or Independent Contractor, IRS and Tax
That's just the fed, each state is different as well.. As I said, only the honest get screwed.....
Safe harbor rules are only a 1 shot thing I believe and of course only come into play in an audit..
This one pretty well throws out 95% of what people like to believe are 'independent contractors"......
Quote: Location. Independent contractors control where they work. If they work on the premises of the hiring company, it is not under that company's direction or supervision.
Funny country we live in.......