Independent Contractors in Ohio
annmarie
15 Posts
What constitutes an Independent Contactor in the state of Ohio? Do I have to report everyone to whom we've paid wage? Is there a monetary limit to reporting? Who qualifies and how do I find more information on this subject?
Comments
More seriously,
Under ERISA and the Supreme Court they looked at these elements:
1. The hiring party's right to control the manner and means by which the product is accomplished.
2. The skill required
3. The source of the instruments and tools
4. The location of the work
5. The duration of the relationship between the parties
6. Whether the hiring party has the right to assign additional projects to the hired party.
7. The extent of the hired party's discretion over when and how long to work
8. The method of payment
9. The hired party's role in hiring and paying assistants
10. Whether the work is part of the regular business of the hiring party
11. Whether the hiring party is in business
12. The provisions of employee benefits, and
13. The tax treatment of the hired party.
The IRS also uses a simiar 5 factor test:
1. The extent of the employer's control and supervision over the worker, including directions on scheduling and performance of work
2. The kind of occupation and nature of skill required, including whether the skills are obtained in the workplace.
3. Responsibility for the costs of the operation, such as equipment, supplies, fees, licenses, workplace and maintenance of operation
4. Method and form of payment
5. Length of job commitment
The IRS uses 20 factors when determining whether an independent contractor or employer-employee relationship exists:
1. Instructions: Whether the employer has a right to instruct an individual about when, where and how he/she is to work.
2. Training: Whether there are indications that the employer wants services performed in a certain manner.
3. Integration: Whether the continuation of business depends upon performance of those certain services.
4. Services renedered personally; Whether the worker performs the work her/himself.
5. Hiring supervising and paying assistants: Whether the individual controls workers on the job.
6. Continuing relationship; Whether work is performed at frequently reoccuring intervals.
7. Set of hours: Whether the employer sets a schedule of hours for the individual to work.
8. Full-time required: Whether the individual is free to work when and for whom he/she chooses.
9. Performing work on the employer's premises.
10. Order of sequences set: Whether there are established routines and schedules.
11. Oral or written reports: Whether regular reports are required.
12. Payment by hour, week, month? Whether payment is by the job or on a straight commission.
13. payment of business and/or travel expenses: Whether these items are covered by the employer.
14. Furnishing of tools and materials. Whether these items are provided by the worker or employer.
15. Significant investment: Whether the worker invests in facilities,such as rental space.
16. Realization of profit or loss. Whether teh worker is subject to risk of loss due to investments, not payment of services.
17. Working for more than one firm. This must be more than minimal.
18. Making service available to the general public. This should be regular and consistent.
19. Righ to discharge: Whether the employer exercises control through threat of dismissal or whether the individual cannot be fired as long as he/she produces a result in accordance with contract specifications.
20. Right to terminate. Whether each party has the right to terminate the relationship.
Hope this helps. If it walks like a duck and quacks like a duck, it's a duck!