A few years ago, Virginia state officials cracked down pretty hard on facilities hiring freelancers over and over again, saying that these folks (myself included) were actually employees and the facility was trying to avoid paying the required taxes by calling us freelancers . What I did (and many others), was create an s-corp from my former sole proprietorship that billed the facilities and paid me a salary that took out all the taxes required. This satisfied the state and federal folks.
--- In Avid-L2@yahoogroups.com, Jim Feeley <jfeeley@...> wrote:
>
> Greg's RoT appears to parallel my understanding of the guiding principle: If an employer can tell you what to do, when to do it, and how to do it, then the IRS could consider you an employee.
>
>
> A lawyer's understanding (from Nolo.com):
>
> =====
> Retain Control of Your Work
> The most fundamental difference between employees and independent contractors is that employers have the right to tell their employees exactly what to do and how to do it. Don't permit a hiring firm to supervise or control you as if you were one of its employees. It's perfectly okay for the hiring firm to give you detailed guidelines or specifications for the results it expects from you. But how you go about achieving those results should be entirely up to you.
>
> Following these guidelines will help you show that you are the one in charge:
> • Don't ask for or receive training from the hiring firm.
> • Don't let the hiring firm dictate your working hours, although the firm may give you a deadline for completing your work.
> • Decide where you will do the work, unless the work has to be performed on the hiring firm's premises.
> • Decide whether to hire assistants to help you; if you hire workers, pay and supervise them yourself.
> • Don't ask for instructions from the hiring firm about how to do your job.
> =====
>
> That excerpt is from this article:
>
> Preserving Your Status as an Independent Contractor
> Follow these strategies to avoid being reclassified as an employee.
> http://www.nolo.com/legal-encyclopedia/preserving-status-independent-contractor-30177.html
>
> More info from Nolo on self-employed consultants and contractors. Good free articles, good low-cost books and other such stuff. Written and/or edited by lawyers for non-lawyers:
> http://www.nolo.com/legal-encyclopedia/consultants-contractors
>
>
> Jim
>
>
> On Aug 18, 2013, at 7:39 PM, Greg Huson wrote:
>
> > It does in California, unless they have a loan out corporation. Our rule of thumb is that if they use our gear in our facility and are supervised, they're in payroll- even if they're temporary. If we send them work to do at home in their free time, then they're contractors.
> >
> > ________________________
> > Greg Huson
> > Secret Headquarters, Inc
> > Greg (at) SecretHQ.com
> > www.SecretHQ.com
> > DigitalServicsStation.com
> >
> > On Aug 18, 2013, at 7:32 PM, Donnie Rogers <donnie@...> wrote:
> >
> > > This question is directed to the facility owners (or freelancers)
> > > We've never needed to worry about this before, so it wasn't an issue, but where is the dividing line between a freelancer or direct employee? If they are using our suite, and we have booked them for a specific time, does this make them an employee (for taxes and such)?
> > >
> > > Thanks in advance,
> > >
> > > Donnie Rogers
>
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