It's very tricky to determine whether someone is actually misclassified or not.
The IRS form to file as an (ex-)employee/contractor to get a proper determination is form SS-8. You can guess how I know that. It takes a VERY long time for those sorts of things to be processed - and the penalties to employers are potentially very harsh. [But so are IRS tax penalties in general.... so this is not much of a shocker.] I am not an accountant, thank god. I'd leave a trail of misery in my wake. --e On Mon, Dec 10, 2012 at 1:11 PM, 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..." >
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