![]() ![]() The time or mode of pay does not control the determination of employee status.Įven though there is no one determinative factor, "the biggest factor is going to be the degree of control," says David Miklas, employment attorney with Miklas Employment Law.Whether an alleged independent contractor is licensed by state or local government.The absence of a formal employment agreement.The degree of independent business organization and operation.".The amount of initiative, judgment, or foresight in open market competition with others required for the success of the claimed independent contractor.The alleged contractor's opportunities for profit and loss.The nature and degree of control by the principal.The amount of the alleged contractor's investment in facilities and equipment.The extent to which the services rendered are an integral part of the principal's business.Among the factors which the Court has considered significant are: Rather, the Court says, "it's the total activity or situation which controls. Supreme Court has repeatedly held there is no single rule or test for determining whether someone is an independent contractor ( 1099-NEC) or an employee ( W-2) for the purposes of the Fair Labor Standards Act (FLSA). If you make a good faith effort to clear as many factors as possible, you'll be well on your way to classifying workers correctly. That said, many test factors coincide, while others contradict each other. Each has its own angle, which means that each has a slightly different focus. More than one government agency has a test to define what an independent contractor is. The Three Sets of Tests to Determine Status With all these rules and changes floating around, how are you to know how to classify work without getting into trouble? Meanwhile, the IRS held fast to its two key points with nine clarifying aspects. Earlier, the National Labor Relations Board (NLRB) eliminated three of its factors that clarified the definition of an independent contractor. But by May 5th, the clarification was rescinded. ![]() Department of Labor (DoL) issued its final rule clarifying who an independent contractor is versus an employee. ![]() After all, the rules change as often as the administrations in Washington, D.C. Classifying workers as employees or independent contractors is a tricky business. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |