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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120809  
Subject: Re: employee and contract labor Date: 10/16/2013 2:31 PM
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Thanks Bill.

The employee/independent contractor helped a lot. It's easier in WA than in most/some states because here all people paid as independent contractors have to have a business license. Our state charges a B & O tax to all businesses. One of the companies I worked for had a cleaning lady that came in for 3 hours per week. They had been paying her as a independent contractor. Since she didn't have a business license the state after an audit by State Industrial Insurance made them put her on payroll. They didn't contact her. I wonder if the audit had been done by the Department of Revenue or IRS if it would have triggered an audit of the cleaning lady.

It was a time consuming audit. They went through every check. The ones that were made out to people they had the company verify they either had a state license or were on payroll. They even questioned the payments to the paper boy. At the time it was $8.00 per month.

That depends on the terms of the company health plan and group policy, etc. It's not unusual for corporate board members to be on the health plan. (Even IRS agrees they're self-employed. That's a law.)

I wonder if being on the company plan wouldn't be a reason for the state or federal folks to say they really are an employee not an independent contractor.

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