The IRC says the term "employer" means the person for whom an individual performs any service as the employee of such person. If a person is not an employer, is it logical to conclude that the individual who performs a service for him is not an employee?
by 
Anonymous
ANSWERS: 1
-
While that may be a logical conclusion, the legal definition for tax purposes of an employee vs. independent contractor has clear criteria. see http://www.irs.gov/newsroom/article/0,,id=173423,00.html on the specific classification criteria for employee vs. independent contractor. Basically, if the person hiring you to do a particular job or service has control over how you do it then you are most likely their employee - whether or not they acknowledge their role as employer. The miscategorizing of employees as independent contractors can lead to penalties, unexpected tax liabilities and potentially the payment of back wages if a further miscategorization of exempt employee status was made.
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC