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-   -   Employee/Independent contractor (https://www.askmehelpdesk.com/showthread.php?t=170615)

  • Jan 9, 2008, 01:30 PM
    pmiller9273
    Employee/Independent contractor
    I asked my employer/company the following question:

    How does XXXXXXXXX classify us? As Independent Contractor or Employee's?

    Everything that I'm reading on the IRS site points to Independent Contractor.


    There response was:

    Yes you are considered a contractor.


    How do I determine if I am an employee or an Independent Contractor?
  • Jan 9, 2008, 01:34 PM
    twinkiedooter
    You are an Independent Contractor if your employer is NOT taking out any taxes whatsoever from your pay. You are am Employee if they are taking out tax deductions. There is nothing in between that I'm aware of.
  • Jan 9, 2008, 01:36 PM
    Visa Taxes Expert
    Hello

    It depends on the company, and the way they have you in their accounting / payroll system.

    If they pay you and send 1099 at the end, you are considered independent contractor.

    If they pay you on W-2, then you are a full time employee.

    Hope this helps!
  • Jan 9, 2008, 02:06 PM
    AtlantaTaxExpert
    The Form 1099 versus W-2 rule is the ONLY ONE that really matters.

    If you get Form 1099, you are an independent contractor.

    If you ger a W-2, you are an employee.

    You CAN challenge this designation with the IRS if your job meets certain criteria as specified by an IRS checklist, but the result of such a challenge is normally termination from your job, so it may not be worth it.
  • Jan 9, 2008, 02:45 PM
    ScottGem
    If your company told you, that you were a contractor, why would you question it?
  • Jan 9, 2008, 02:56 PM
    AtlantaTaxExpert
    Scott:

    Because MANY companies pay them as independent contractors (to avoid paying the FICA and unemployment taxes, plus workmen's compenation), yet keep the tight controls that is normal for an employer-employee relationship.
  • Jan 10, 2008, 02:35 AM
    MukatA
    To read the difference between an Employee and an Independent Contractor:
    http://www.irs.gov/businesses/small/...d=99921,00.htm
  • Jan 10, 2008, 11:06 AM
    AtlantaTaxExpert
    Good reference link, MukatA!

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