I wouldn't say "breaking laws", but depending on how your state government works, they may be in line for a closer look-see. Like John pointed out, many companies are simply taking the taxes out as a rule, if you are not a corporation.
--- In Avid-L2@yahoogroups.com, namyrb <namyrb@...> wrote:
>
> I get paid as a freelancer all the time even though all I do is work inside
> the facilities and use their equipment. Does that mean that my employers
> have been breaking laws this whole time?
>
> On Monday, August 19, 2013, Scott wrote:
>
> > **
> >
> >
> > 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 <javascript:_e({}, 'cvml',
> > 'Avid-L2%40yahoogroups.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
> > >
> >
> >
> >
>
>
> [Non-text portions of this message have been removed]
>
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