How do you determine if someone is an employee or independent contractor?
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, not what will be done and how it will be done. Small businesses should consider all evidence of the degree of control and independence in the employer/worker relationship.
What is an independent contractor in Massachusetts?
Independent Contractor law, which requires that workers perform a service “outside the usual course of the business of the employer” to be classified as independent contractors.” Therefore, workers who deliver papers may remain independent contractors.
What is the difference between an employee and an independent contractor?
Key takeaway: Independent contractors are not employed by the company they contract with; they are independent as long as they provide the service or product agreed to. Employees are longer-term, on the company’s payroll, and generally not hired for one specific project.
Does the Massachusetts Wage Act apply to independent contractors?
If a person is truly an independent contractor (meaning they meet all three elements of the three part test), then the wage and hour laws are not applicable. This includes minimum wage, overtime, and rules for the timely payment of wages under the Massachusetts Wage Act.
Why is it important to distinguish between an employee and an independent contractor?
Employees and Independent Contractors – Defined Determining whether a worker is an independent contractor (IC) or an employee is important because it determines whether payroll taxes (income taxes and FICA taxes) are withheld from the person’s payment.
Are independent contractors considered employees?
Wage & Hour Law Independent contractors are not considered “employees” under the Fair Labor Standards Act and therefore are not covered by its wage and hour provisions. Generally, an independent contractor’s wages are set pursuant to his or her contract with the employer.
Are all 1099 employees independent contractors?
In California, workers who report their income on a Form 1099 are independent contractors, while those who report it on a W-2 form are employees. Employers who pay workers as independent contractors but treat them like employees can be held liable for worker misclassification.
Can an independent contractor be considered an employee?
What are some examples of independent contractor jobs?
Sometimes independent contractor jobs involve various types of trades. For example, an individual may work as an electrician, plumber, mechanic, or carpenter. Some hair stylists and nail technicians work as independent contracts as well, and lawn care specialists may also perform their work as independent contractors rather than employees.
What is a 1099 contractor?
A 1099 contractor is a person who works independently rather than for an employer. There are significant differences in the legalities of a contractor and employee. While the work can be similar in nature, it is important to follow the law with regard to taxes, payments, and the like. What Is the Difference Between 1099 and W-2?
What are independent contractors?
An independent contractor is a person or entity contracted to perform work or provide services to another entity as a non-employee.
What is a contractor employee?
Contractor employee means an employee of the prime contractor or of any subcontractor, affiliate, partner, joint venture, or team members with which the contractor is associated.