Posted by Jose Ramon Maestre on 11/9/13 12:28pm Msg #492090
Consider the IRS as you follow SPW & NNA
Are we risking our independent contractor status if we follow the SPW & NNA new code of conduct and new requirements.
This is taken from the IRS site on definition of Independent contractor
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee
Common Law Rules In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.
Facts that provide evidence of the degree of control and independence fall into three categories:
Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
more detailed info can be found for each at,
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Behavioral-Controlhttp://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Financial-Controlhttp://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Type-of-Relationship
This information is to long to post, but deserves reading.
This information will show that if we follow along with what the SPW and NNA are requesting and requiring, we would in essence be jeopardizing our status as independent contractor, risk being considered employees with no benefits and all the cost.
| Reply by desktopfull on 11/9/13 1:06pm Msg #492093
If the answer is yes to any of the questions you posted, you "are not" an independent contractor. Don't need to read any further, but it would be a good idea to review the IRS information on the subject.
| Reply by MW/VA on 11/9/13 1:35pm Msg #492097
Thanks. This has been discussed on the forum recently by
those who are CPA's & TEA's. I think the greater impact is that it is limiting competition in the marketplace by requiring this "compliance" issue set down by a third party (XYZ) who stands to profit from it. They are in affect eliminating their competition (not that there really is any for them, who have set themselves us as the industry's "authority". It will hurt everyone, including Harry here on NR by limiting bgc's to just a couple of cos., etc. Unless they are in a position to pay me, they have have no right to request or require it, IMO. The key word in all this is "require". I'm an independent contractor & independent small business owner. I had laws & regulations I have to comply with (notary laws of VA, tax laws from IRS, state of VA, etc., and I do comply with GLBA). This is not a law or regulation, and I am not required to follow it. They've created a lot of panic, and got a lot of "sheepels" on board.
| Reply by desktopfull on 11/9/13 1:48pm Msg #492099
Re: Thanks. This has been discussed on the forum recently by
They were losing members by the droves and devised this marketing scheme to make themselves relevant again. Coffers must have been getting low.
| Reply by MW/VA on 11/9/13 7:09pm Msg #492132
Exactly! Business is down for all of us, so they created a
new kind of snake oil. ;-(
| Reply by MAC/WA on 11/9/13 3:22pm Msg #492105
SBA: Independent Contractor vs Employee
Yes, already posted and discussed but also good to keep in front of us as we all fight the Standards. The link is on the same subject but by the Small Business Administration (might have to cut an paste to browser, sorry):
http://www.sba.gov/content/independent-contractors-vs-employees
| Reply by JanetK_CA on 11/11/13 11:51pm Msg #492347
Re: SBA: Independent Contractor vs Employee
According to these guidelines, there seems to be no question that most of us are independent contractors and not employees. (There might be some exceptions amongst us, depending on how we operate and how many companies we work for, but I'd suspect it to be very few.) If this is the case, then it's logical to assume that no one can legally "dictate or control" the way we operate our businesses or conduct our work.
I think it would be extremely difficult for any organization (especially one that doesn't yet exist) to hire as employees (even on a contract basis) enough people across the country to handle all the signing work that the Fidelity co's, and other affiliated title co's, can come up with.
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