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MYTH 1: Companies are safe if their independent contractors:
Work sporadically, inconsistently, or on
call.
Work for more than one company.
Hire and pay their own assistants.
Claim they operate a separate business or
that they are in business for themselves.
Work independently without supervision.
Work without interference from the hiring
firm; they have inherent freedom in their jobs.
Work as consultants.
Work one time only or on an as-needed
basis.
Are paid commissions only or piecework.
Keep all (or a large percentage) of the
fees collected for their services.
Aren't guaranteed a minimum income by the
hiring firm.
Ask to be treated as independent
contractors; the hiring firm is accommodating their wishes.
MYTH 2: Companies are safe if they:
Get the worker to agree he is an
independent contractor.
Prepare a written contract stating the
worker is an independent contractor.
Know about other companies which treat
similar workers as independent contractors.
Can prove that a worker performing many
tasks is a true independent contractor in at least one task.
Do not control the independent contractor's
actions.
MYTH 3: Using independent contractors is
great because:
Hiring firms aren't liable for independent
contractor's actions.
Hiring firms can save a lot of taxes before
the government ever catches them.
MYTH 4: Family members, corporate
owners, and domestic workers are like independent contractors, so they don't pay
employment taxes:
My family members (children, spouses,
parents) are owners, just like me.
Corporate directors and sole shareholders
are self-employed;.
Baby-sitters, domestic maids, and aides to
the disabled are self-employed.
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relationship will be created through your use of this Web site, nor from any response from
or conversation with Top Echelon's Legal Department. |
