Independent Contractor

[Kurly]

Mornin All:

Do any of you have or know where I could get my hands on a yes/no checklist to determine Independent Contractor vs Employee. (similiar to the Federal Form SS-8).

It would be kind of a iff more yes's one direction would classify the person as to either.

Thanks I kind of rambled huh?

Thanks again I enjoy all you folks on here.

[JohnH]

What's wrong with the SS-8?

Why not just use the SS-8?
You don't have to mail it in after you've filled it out.

[solomon]

Revenue Ruling 87-41.

[Zee]

http://smallbusiness.findlaw.com/business-forms-contracts/form1-21.html

There are several others available simply by searching for "independent contractors checklist" on the internet.

[Lion]

Ss-8

And, remember that the IRS weights the "relationship" items more heavily. It's not just "more yesses than noes." But, I agree that filling out the SS-8 for informational purposes gives you and your client an idea of how the IRS will look at their employment and is a good starting point.

[WhiteOleander]

Also, remember, the IRS may be the least of your problems.

Each state has their own rules as to who is an Ind. Cont. and who is an employee. So, even if the IRS might not challenge calling them an Ind. Cont., the state may call them employees.

States are usually much more agressive in classifying workers as employees. And they will penalize very heavily and very quickly.

Workers will go file for unemployment compensation and the state will then go audit the company. It goes downhill from there.

So, be sure to check with the state you are in before deciding how to classify the worker.

[Lion]

Contractor or Employee?

Tax Talk Today: What's Hot in Employment Taxes -- Independent Contractor or Employee?
The Nov. 6 Tax Talk Today deals with worker classification issues. Panelists will discuss legislative and judicial background and recent changes regarding worker classification, why it is important and what the IRS is doing about it, and what workers who feel they have been misclassified can do to correct their situation. Tune in before 2:00 p.m. EDT to get any program materials available.