Posted by MAC/WA on 11/4/13 6:48pm
Msg #491254

IRS: Independent Contractor Defined

Independent Contractor Defined
People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.
If you are an independent contractor, you are self-employed. To find out what your tax obligations are, visit the Self-Employed Tax Center.
You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed.
If an employer-employee relationship exists (regardless of what the relationship is called), you are not an independent contractor and your earnings are generally not subject to Self-Employment Tax.
However, your earnings as an employee may be subject to FICA (Social Security tax and Medicare) and income tax withholding.
For more information on determining whether you are an independent contractor or an employee, refer to the section on Independent Contractors or Employees
Page Last Reviewed or Updated: 11-Sep-2013

Reply by CarolF/NC on 11/4/13 9:58pm
Msg #491281

Now what? Do we pull out state tax codes

call and email our state tax offices and see if they want to go after these companies who subscribe to the proposed SPW guidelines for employment tax , Medicare and disability taxes? Stated are hungry for revenue.

Reply by JimAZ on 11/4/13 10:01pm
Msg #491282

Well said. I've saved this as a response to the daily crap from SS's. I will also ask them what my employee benefits will be and include a completed W-4. When I get a paper cut, dog bite, or trip in the dark going up the driveway, I will need to file a workers compensation claim. This could get very messy for the "regulators".

Reply by CarolF/NC on 11/4/13 10:11pm
Msg #491284

Good idea. But you need to n/m

Reply by CarolF/NC on 11/4/13 10:13pm
Msg #491285

Oops lobby SAs in your area to do the same otherwise

They will find some notary who will go out and for $50

Reply by MAC/WA on 11/5/13 12:10am
Msg #491298

Standards allow lenders/title/escrow to control how the work

will be performed; see my other thread, the standards clearly tell us how to perform the work.

Per IRS: "You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed."