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  • Employee vs indepedent contractor

    Are there any legal (or otherwise) reasons why an individual cannot be treated as both an employee and independent contractor at the same time?

  • #2
    It is very rare unless the work done as an IC clearly qualifies. What is the employee's regular job and what is the work to be done as an IC?
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      Thanks for your response!

      The employee is a licensed engineer that came back from maternity leave (working part time now) and negotiated this deal with my predecessor prior to my starting here. It has to do with some issues regarding our professional liability insurance - on certain types of jobs she needs to be covered by it - and on others she does not. She has to be an employee to be covered. In general, the work performed in both situations is basically design work, construction supervision, etc.
      On jobs that she does not have to be covered by our insurance, she works as an independent contractor and submits an invoice. If she DOES need to be covered, she submits a time sheet and is paid through payroll. The work performed in either situation is not that different, and the hourly rate is the same.

      Now that I'm here, I think this is weird and I would like to tell this person that she needs to pick either one or the other. However - I was hoping that there is some kind of information or documentation that I could refer to that would back up my decision. What do you think?

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      • #4
        If she is doing the same work, it is going to be virtually impossible to justify an employment relationship for some of it but not the rest. And it's not a matter of "making a choice", but it is what the law mandates. The default is an employee/employer relationship. Anything other than that needs to be justified under the applicable guidelines.

        The most common and comprehensive IC test is the IRS'
        http://www.irs.gov/businesses/small/...=99921,00.html

        See if this helps.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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        • #5
          Great - thanks so much for your quick reply!

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          • #6
            You're welcome.
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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