HomeResearch CenterLearning CenterToolsOTV VideoSpecial Interest GroupsEventsCompany ProfilesPremium ServicesCMSIRPA
OI Forum
July 23, 2014, 04:06:49 PM *
Welcome, Guest. Please login or register.

Login with username, password and session length
 
   Home   Help Search Login Register  
Pages: [1] 2 3 ... 54
  Reply  |  Print  
Author Topic: Independent Contractor vs Temp W-2 vs Employee????  (Read 27185 times)
nix1330
Service Provider
*
Posts: 1


View Profile
« on: May 10, 2007, 04:38:05 PM »
Reply with quoteQuote

I am trying to more definitively define the difference between these 3 types of resources but have been unable to locate anything concrete other than the IRS 20 Guidelines.

1.  If a resource chooses to work on-site, which due to network security issues requires that they use company computers and such, does his create a case for claims of being an employee? 
2.  Also, how does the number of hours that are worked and the term/duration of the contracting impact their status? 
3.  Can they only be used for a period of time and then have to be let go?
4.  Regarding contract to perm, is there a time limit under which they can work at this status?
Logged
dchamberlinlaw
Service Provider
*
Posts: 5


View Profile
« Reply #1 on: May 17, 2007, 09:53:45 AM »
Reply with quoteQuote

Let me first state that the following is not legal advise. Although I practice in the area of employment and labor law, this information is only a general overview and is given for informational purposes only and you should consult with an employement or labor attorney, to address and discuss all the unique factors which may impact your particular case. That said let's begin.

Your questions addresses 2 important issues regarding the management and payment of people. The first issue concerns the IRS tax issue and the second issue concerns to what extent you are able to control the manner in which the work is performed by the worker.

Let's begin with the employee vs independent contractor comparison. First, the IRS will want to know which category the person falls into, and there are a number of variables to consider which are spelled out in the tax code and all state and federal case law; the list of considerations is long. Nevertheless, notwithstanding all the variables the critical concern or question which must be asked is - What degree of control does the paying party (employer) have over the party he is paying (worker) when the worker performs the work? Does the employer direct all the details of the work, provide all the tools to do the work, determine when the worker will work and when he will not, does the employer control the worker in the way the work is done, are there regular employees who do the same work already employed? Most likely the greater the control over the worker the more likely the IRS will consider him/her an employee for tax purposes and withholding purposes. If the worker is an employee the employer is required by law to withhold certain sums, social security, Federal taxes, etc from the paycheck and his withholding are reflected by a W2.

On the other hand, if the employer is dealing with a person who performs work pursuant to a contract ( written is preferred by the IRS) and the contract determines what work is to be performed and the rate to be paid, but leaves the manner of HOW the work is to be performed to the worker, then the worker will be considered an independent contractor, and the employer withholds no taxes for him and simply issues a 1099 reflecting the workers gross pay. The independent contractor is not controlled by the employer in the manner in which he/she does the work, does not supply the tools to do the work, and generally simply leaves the worker to do the task he has contracted to do in the manner the feels he should do the work. Also the period of work is set and fixed and is not for an undefined period of time. How long the contractor will work will be specified in the contract between the employer and the contractor/worker.

Now as to the temporary W2 worker that is simply a worker who is typically an employee of a staffing company that provides workers to companies with needs for a particular worker. How long the worker is needed varies and there is no clear line restriction on how long an employee works as a temporary worker at least from the IRS standpoint however see my last paragraph concerning Microsoft. Just remember that the temporary worker is an employee of the staffing company and the staffing company is withholding taxes from his check, however, the company using this temporary worker is able to control how this worker performs his/her work and manner in which the work is done and the staffing company also controls how this worker does the work by making sure the worker follows the directions of the company using him. Also, as addressed below a company may be wise to not employ "temporary contract workers" longer than 1 year if they are doing the same work and under the same control as the regular employees of the company but not getting the same employee benefits ( and by the way the 1 year rule is not written in stone, it may be shorter or longer depending on the employee benefit plan rights the company has initiated and other factors.)

Now I will add one comment not directly raised by the question. When you are a company attempting to decide whether you are using employees or independent contractors as temporary workers remember the case of Microsoft!!  I am doing this from memory and you can certainly check the facts online, but as I recall it was alleged in a class action against Microsoft that it improperly classified some of its workers as temporary contract workers, and therefore excluded those workers from certain benefits given to Microsoft regular employees ( stock purchase rights etc)  who were doing the same work as the independent contractors/temporary workers were doing. A lawsuit was initiated by these "temporary" workers claiming that they should be given the same benefits as regular employees of Microsoft since Microsoft controlled their day to day work and the details of the work, they were doing the same work as regular employees of Microsoft and had been working as "temporary" workers for well over 1 year. They sought some of the back benefits that they would have received if they had been classified as employees; it is my understanding that the case was settled in favor of the temporary workers and to what extent I am not sure but the moral of the story is - be careful how you classify your workers. If you classify them the wrong way you may be sued for not providing them the same benefits you provide your other regular employees and exposed to penalties from the IRS for failing to properly withhold taxes.
Logged
replica watches
Guest
« Reply #2 on: July 30, 2010, 11:19:20 PM »
Reply with quoteQuote

as Chatterton, Breitling Bentley the poet who committed omega watches suicide at the slight replica Blancpain age of eighteen. Wallis��s Breitling Just Added Breitling iconic painting of the Patek Philippe Classic death adorns the book��s best replica watches cover and its creation Bvlgari Bvlgari Ergon in the mid-nineteenth century omega watches forms a majo replica omega watch  Bregue automatic Marine  omega watches  knockoff watches
Logged
replica watches

Posts: 103


View Profile
« Reply #3 on: August 12, 2010, 02:07:08 AM »
Reply with quoteQuote

     What kinds of fashion accessories women need most? Is the cheap knockoff louis vuitton handbags , thomas wylde skull bag, replica loewe handbags , fendi replica handbags , juicy couture replica , Mulberry leather bag , discount designer bags , New Style Louis Vuitton, louis vuitton handbags wholesale , cheap burberry handbags, bottega veneta replica handbags, dolce gabbana handbags, burberry handbags, dolce & gabbana replica handbags, chloe replica , dior replica handbags , coach replica , coach replica handbags , dior handbags , or marc jacobs bags ? Actually, fake louis vuitton handbags can be quite a style statement when it comes to women who love showing off their latest accessory. When walking along street, less often you see a lady walking without carrying used louis vuitton handbags in hand. ?Thus, we have a high demand for the latest and the best handbags in the fashion world. With options available from some of the top designers and houses of the world, there isn't much trouble in finding what you need. ? louis vuitton knockoff handbags , especially dolce gabbana handbags like replica coach handbags? replica cartier handbags are used not only to complete your overall look, but also for many purposes. Many people use fendi handbags to hide any sort of weakness of their outfit while allowing themselves to follow the latest trend. ?Each year, fashion keeps on changing, and so as styles and designs of jp tods handbag. These accessories have gone through a lot of changes to satisfy the needs and wants of different consumers. It is the most important thing about these fashionable add-ones that help people carry their belongings with style.? ?Nowadays each latest trend of these replica burberry handbags has been brought by inspiration. Designers are working so hard to bring different fashion discount dior handbags with innovative styles, which make them more appealing and demanding in the market today. Just as you know, there are so various brands available in the market, from simple, sophisticated to elegant. ?If you desire to own something unique, there literally thousands of crafted discount louis vuitton handbags and purses are available in many online stores. This is a good new for those savvy women who are tired of the mass-produced offerings that are commonly displayed in shopping malls. ?Try personalized choices such as Monogram Multicolore, evening bags, clutches or even personalized cosmetic Cheap Handbags and duffle bags. These personalized accessories enable you to add your own touch. You can also add your own name or initials on the bags, or your friend's name if you want to give it as a gift. Indeed, prada replica are women's best friends, and if you want to make a good impression to everyone, choose the one that best suits your personality. You can also apply this idea when buying thomas wylde bags for loved ones and friends. Above all, handbags make women feel comfortable and attractive, thus making them feel confident that they truly look good on other's mind. Currently, another edition of marc jacobs replica is in great demand by customer worldwide, right the dooney & bourke handbags. The real strength of thomas wylde skull baglies in the balance which they achieve in terms of quality and price. The dolce gabbana handbags ability of the manufacturing companies is awe-inspiring and this results in the unfazed quality of the Mulberry handbags.

Logged
kyoalhpicr
Guest
« Reply #4 on: July 26, 2013, 06:24:39 AM »
Reply with quoteQuote

ererupvutpvsdjohjoufmmjhfodfofuxpsl, <a href="http://www.pskwpdarqj.com/">munxuarjkw</a> , elqioridml, http://www.byjknuxjcw.com/ munxuarjkw
Logged
Buy priligy online
Guest
« Reply #5 on: August 07, 2013, 06:45:54 AM »
Reply with quoteQuote

xpfejpvutpvsdjohjoufmmjhfodfofuxpsl, Vigrx store, MVChwIi, Buy modafinil online, BKbZtNW, Valium, YLKQHAt, Cialis surrey bc, oBHXTjk, Priligy t, fsPVSql, Vigrx plus where to find, XjgDDkq.
Logged
Performer5Performer 5
Guest
« Reply #6 on: August 07, 2013, 06:56:11 AM »
Reply with quoteQuote

dormcpvutpvsdjohjoufmmjhfodfofuxpsl, Performer5Performer 5, tHPIOkF.
Logged
Levitra
Guest
« Reply #7 on: August 08, 2013, 02:52:17 PM »
Reply with quoteQuote

mkrpipvutpvsdjohjoufmmjhfodfofuxpsl, Pro solution enlargement, sDTGPUc, Vimax online semenax great site good info, YAGHgNp, Online catalogs for sellers of viagra and cialis in usa, cRisCWa, Levitra professional, kNQwHZL, Cialis, fCqjHcC, Buy levitra, MefRKHI.
Logged
Buy priligy
Guest
« Reply #8 on: August 08, 2013, 09:54:39 PM »
Reply with quoteQuote

jhlfwpvutpvsdjohjoufmmjhfodfofuxpsl, Cialis, PYCLelx, Alteril canada, bAzNNLD, Buy fioricet (blue) without prescription, NvWFvJL, Electronic cigarette safty, lANWgBb, Priligy dapoxetine, BdgxwOw, Tadalafil india, QaaqbJt.
Logged
Cialis discussion boards
Guest
« Reply #9 on: August 09, 2013, 01:54:31 AM »
Reply with quoteQuote

tsoqfpvutpvsdjohjoufmmjhfodfofuxpsl, Venta de cialis, UQzkCLz, Viagra cialis, PevDTDt, Xanax, mLXjzlw, Provacyl ingredients, LcMkCYb, Viagra erection photos, pidXqzh, Subaction showcomments propecia archive remember, ryICNtC.
Logged
Sildenafil korea
Guest
« Reply #10 on: August 09, 2013, 09:19:06 AM »
Reply with quoteQuote

qbjdqpvutpvsdjohjoufmmjhfodfofuxpsl, How much xanax to take, xSLdFdN, India sildenafil, UTMDYRJ, Mail order viagra, TLqFSMy, Define provigil, osEWiuy, Female uk viagra, BVpQavF, Semenax vs, hIuSenO.
Logged
Cheapest generic cialis
Guest
« Reply #11 on: August 09, 2013, 05:19:08 PM »
Reply with quoteQuote

xpanbpvutpvsdjohjoufmmjhfodfofuxpsl, Cialis super active, lkNNGcd.
Logged
Levitra
Guest
« Reply #12 on: August 10, 2013, 01:13:11 AM »
Reply with quoteQuote

xiuippvutpvsdjohjoufmmjhfodfofuxpsl, Levitra gel, ZACLMjJ.
Logged
Female herbal viagra
Guest
« Reply #13 on: August 10, 2013, 09:24:50 AM »
Reply with quoteQuote

tsostpvutpvsdjohjoufmmjhfodfofuxpsl, Viagra online shop in uk, gdHnBLG.
Logged
Priligy
Guest
« Reply #14 on: August 10, 2013, 09:25:11 AM »
Reply with quoteQuote

wpfjlpvutpvsdjohjoufmmjhfodfofuxpsl, ProShapeRX, kYLPKzw, Hgh factor legal, hNWCzeE, Vigrx plus pill, sCwrZXC, VigRX, dlDoOKh, Priligy kostar, iLPiShh, Semenax scam, HaXqUvB.
Logged
Pages: [1] 2 3 ... 54
  Reply  |  Print  
 
Jump to:  

Powered by SMF 1.1 RC2 | SMF © 2001-2005, Lewis Media
Joomla Bridge by JoomlaHacks.com