All Topics > Business Services > What classifies an independent contract worker >

What classifies an independent contract worker New York

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.

Local Companies

Diamond Detective Agency
716-565-6977
247 Cayuga Rd
Buffalo, NY

Intricate Investigative Service
(585) 586-1680
111 Marsh Rd Ste 4
Rochester, NY

Josephs Security Inc
(585) 392-0660
3 Stephanie Ct
Rochester, NY

Petro McCrum Consulting, LLC
(845) 566-0391
1662 Route 300, Suite 126
Newburgh, NY

Amherst Town Administrative Offices
716-689-1355
500 John James Audubon Pkwy
Buffalo, NY

Genier Security Services
(585) 292-5090
179 Montcalm Dr
Rochester, NY

La Security Inc
(585) 235-0721
581 Brooks Ave
Rochester, NY

Michael Giardina Investigative Services
(585) 383-5170
109 W Commercial St
Rochester, NY

New Paltz DBA
(845) 255-6277
6 North Front Street
New Paltz, NY

New Paltz Regional Chamber of Commerce
(845) 255-0243
124 Main Street
New Paltz, NY

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

Diamond Detective Agency

716-565-6977
247 Cayuga Rd
Buffalo, NY

Read more about What classifies an independent contract worker

- Encouraging a Bad Worker to Quit New York

If management is of the view that an employee is 'bad' and he or she ought to be encouraged to quit the job, the objective should not be to fire the employee but to get him or her to resign from the job. It is important for an organization to take this route for safety from legal aspects.

- Hiring Independent Contractors New York
- Selling Franchise New York
- Classifying Contract Workers New York
- Rates of Pay for Contractors New York
- Contract Guide New York
- Contract Programming New York
- Hiring a Domestic Worker New York
- Internet Home-Based Business New York
- The Safest Way To Start A Business New York

Regional Articles

- Selling Franchise New York

The main option may be to sell your franchise. Your contract may allow you to sell your franchise to someone who is willing to buy it, however you will most likely be the one trying to find that person. If your contract does allow this you will want to make sure you get the most from it.

- Rates of Pay for Contractors New York
- Hiring Independent Contractors New York
- The Safest Way To Start A Business New York
- Classifying Contract Workers New York
- Contract Guide New York
- Contract Programming New York
- Internet Home-Based Business New York
- Encouraging a Bad Worker to Quit New York
- Hiring a Domestic Worker New York

Related Local Events

Weekly Chamber Meeting
Dates: 11/27/2009 - 11/27/2009
Location: Hulbert House
Boonville, NY
View Details

BOARD OF TRUSTEES MTG
Dates: 12/1/2009 - 12/1/2009
Location: Municipal Building
Hastings, NY
View Details

Inlet Area Business Association Meets
Dates: 12/1/2009 - 12/1/2009
Location: Inlet Town Hall
Inlet, NY
View Details

NETWORK FOR ENTERPRISING WOMEN (N.E.W.) LUNCH
Dates: 12/1/2009 - 12/1/2009
Location: The Ramada Inn-Glens Falls
Queensbury, NY
View Details

YOUTH COUNCIL MTG
Dates: 12/2/2009 - 12/2/2009
Location: Lower Level Community Center
Amherst, NY
View Details

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

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