October 18, 2022
Employers often prefer to classify their workers as independent contractors rather than employees. This is because working with independent contractors saves employers a lot of money. With independent contractors, employers do not have to contribute to Social Security and Medicare taxes, they do not have to pay unemployment insurance for the contractor, and they will not have to pay for worker’s compensation insurance for the contractor. Also, independent contractors do not enjoy employee rights like minimum wage, overtime pay, or sick pay.
If you have been classified as an independent contractor but would prefer to receive employee benefits, it is important to determine whether or not you have been misclassified. You more than likely should be classified as an employee if the following criteria have been met:
- You have received instruction on how to do the job and/or detailed training.
- You have been provided with work equipment at no expense to you.
- You have been reimbursed for business or travel expenses.
- You have no written client agreement.
- You perform services that are part of the hiring entity’s core business.
If your employment status meets the criteria above, but yet you are still classified as an independent contractor, there are several steps you can take:
- Talk to your employer about reclassification. Once these items have been brought to their attention, they may choose to reclassify you without a battle.
- Upon your employer’s refusal to reclassify you, file IRS form SS-8. This will involve the IRS in determining your worker status for federal employment taxes and income tax withholding. Their determination may force your employer’s hand.
- If all else fails, call a labor attorney to discuss the details of your situation.
We may be able to help you make things right.
