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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