On Dec 10, 2012, at 11:11 AM, Arthur Gaer <[email protected]> wrote:
> Are the "temps" also treated contractors? > > Cause under Federal law the IRS can come down like a ton of bricks on a > business that classifies someone who essentially "acts" as an employee as a > contractor to avoid withholding, paying payroll taxes, etc. > > "For federal tax purposes the usual common law rules are applicable to > determine whether a worker is an independent contractor or an employee. Under > the common law, you must examine the relationship between the worker and the > business. All evidence of the degree of control and independence in this > relationship should be considered. The facts that provide this evidence fall > into three categories – Behavioral Control, Financial Control, and the Type > of Relationship of the parties..." What companies generally do in this case is hire a contract company to handle the paperwork / legal niceties of temp work; namely, Temp Johnny makes $20 an hour from the contracting company, but has a desk at MegaCorp, which pays Contracting Company $28 an hour for Temp Johnny's services. That frees up MegaCorp from having to worry about it, and serves as a handy liability shield in the event that Johnny has an employment claim. -- Corey _______________________________________________ Discuss mailing list [email protected] https://lists.lopsa.org/cgi-bin/mailman/listinfo/discuss This list provided by the League of Professional System Administrators http://lopsa.org/
