Classifying Contract Workers Antioch CA

One of biggest impediments to small business growth is the difficulty of classifying workers as independent contractors instead of employees. This is essentially a tax issue. An independent contractor -- someone who does work for your company but is not a full employee -- is responsible for paying his/her own taxes. If that person were classified as an employee, you would be responsible for taxes. But the IRS has a long list of qualifications a worker must meet to be classified as an independent contractor, and often business owners and the IRS disagree about who qualifies. The IRS qualifications are listed here, along with some steps you can take to increase the likelihood of your workers qualifying as independent contractors.

Local Companies

Pw Miekle Associates Inc
(925) 757-0836
4621 Arabian Way
Antioch, CA
Allstar Knowledge Engineering
(925) 754-3055
Antioch, CA
Jja Consultants Inc
(408) 778-7060
Morgan Hill, CA
M Squared Consulting Inc
(310) 333-8900
2121 Rosecrans Ave
El Segundo, CA
David M Lewis Co
(818) 595-3200
6303 Owensmouth Ave
Woodland Hills, CA
The Thomas Group Ltd
(714) 279-1000
130 S Chaparral Ct
Anaheim, CA
Affinity Logistics
(559) 274-1231
4055 W Shaw Ave
Fresno, CA
Omega Point Institute
(805) 640-7884
Ojai, CA
Organizational Effectiveness Group
(626) 441-9518
Pasadena, CA
Univillage Lp
(951) 774-0079
1201 University Ave
Riverside, CA



One of biggest impediments to small business growth is the difficulty of classifying workers as independent contractors instead of employees. This is essentially a tax issue. An independent contractor -- someone who does work for your company but is not a full employee -- is responsible for paying his/her own taxes. If that person were classified as an employee, you would be responsible for taxes. But the IRS has a long list of qualifications a worker must meet to be classified as an independent contractor, and often business owners and the IRS disagree about who qualifies. The IRS qualifications are listed here, along with some steps you can take to increase the likelihood of your workers qualifying as independent contractors.

The issue of control is central to the IRS' independent contractor evaluation. If you control how a worker completes a task for you, the IRS often regards your relationship with a worker as employer-employee. In order for someone to qualify as an independent contractor, the following conditions must exist:
  • The worker hires, supervises and pays his or her assistants

  • The worker is free to work when and for whom he or she chooses

  • The worker does the work at his or her own office or shop

  • The worker is paid by the job or receives a straight commission

  • The worker has the risk of profit or loss

  • The worker does work for several businesses at one time

  • The worker makes his or her services available to the general public (sometimes indicated by having business cards or a listing in the Yellow Pages)

  • The worker cannot be fired as long as he or she meets contract specifications

Some states have rules regarding independent contractors so check with your state's employment office before hiring. In addition, certain workers are automatically classified as employees, regardless of their work arrangement with you. Workers in this category include: full-time salespeople who sell goods for resale; full-time life insurance agents working mainly for one company; at-home workers who are supplied with material and given work performance specifications; and food and laundry delivery drivers.



To increase your chances of convincing the IRS that a worker is in fact an independent contractor, take the following steps:


  • State in your contracts that a worker is an independent contractor including a statement that all payments to the worker will be reported to the IRS on Form 1099.

  • Pay for work by the job, instead of by the hour, the week or the month.

  • Have all workers submit invoices for work before paying them.

  • State in all contracts with contract workers that the individual is responsible for his or her own insurance, including workers' compensation.

  • Construct a contract that allows the contract worker to use his or her own tools and equipment, and to hire his or her own assistants.

Featured Local Company

Dbris Investigations

209-942-4210
PO Box 31361
Stockton, CA

Related Articles
- Renegotiating Outsourcing Contracts Antioch CA
Sitting down with a vendor to renegotiate an existing outsourcing contract can be a challenging task. David Patzwald, CIO of Schneider Electric North America, offers the following suggestions for how to make your negotiation sessions a fruitful-not frustrating-experience.
- Jobsite Safety Antioch CA
- Staffing - Top 5 Agencies Antioch CA
- Bilingual Safety Training Antioch CA
- Project-Based Staffing Antioch CA
- Selling Franchise Antioch CA
- Rates of Pay for Contractors Antioch CA
- What classifies an independent contract worker Antioch CA
- Contract Guide Antioch CA
- Internet Home-Based Business Antioch CA
Related Articles
- Renegotiating Outsourcing Contracts Antioch CA
Sitting down with a vendor to renegotiate an existing outsourcing contract can be a challenging task. David Patzwald, CIO of Schneider Electric North America, offers the following suggestions for how to make your negotiation sessions a fruitful-not frustrating-experience.
- Jobsite Safety Antioch CA
- Staffing - Top 5 Agencies Antioch CA
- Bilingual Safety Training Antioch CA
- Project-Based Staffing Antioch CA
- Selling Franchise Antioch CA
- Rates of Pay for Contractors Antioch CA
- What classifies an independent contract worker Antioch CA
- Contract Guide Antioch CA
- Internet Home-Based Business Antioch CA
Related Local Events
Ambassadors' Committee Meeting
Dates: 12/2/2009 - 12/2/2009
Location: Fairfield-Suisun Chamber of Commerce
Fairfield, CA
View Details

Town Hall Meeting
Dates: 12/3/2009 - 12/3/2009
Location: Palo Alto City Hall, Council Chambers
Palo Alto, CA
View Details

Member Orientation
Dates: 12/9/2009 - 12/9/2009
Location: San Francisco Chamber of Commerce
San Francisco, CA
View Details

Chamber Holiday Mixer
Dates: 12/9/2009 - 12/9/2009
Location: Cardinal Hotel
Palo Alto, CA
View Details

Business Issues Committee Meeting
Dates: 12/11/2009 - 12/11/2009
Location: Fairfield-Suisun Chamber of Commerce
Fairfield, CA
View Details

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History