Federal labour and labour laws, such as OSHA and ADA, do not apply if you only use independent contractors. However, people can still sue you under other laws if they are injured in the course of dealing with you. Springfield appealed in time. Springfield objects to the Finding by the District Court that the judgments are not prescribed until 1988 and the judge`s finding that he has no right to treat his sellers as independent contractors in accordance with the « safe port » provision of S. 530 of the Revenue Act of 1978.2 Another possibility of determining the difference between an employee and a seller is : how they report to the boss. Typically, a distributor is responsible for the number of numbers: it must sell the number of items for which it has been mandated. Hiring independent salespeople does not exempt you from your basic obligations to obtain safe and non-discriminatory employment. Under the IRS Voluntary Classification Settlement Program, taxpayers have the option of reclassifying their workers as employment tax employees for future tax periods, with entitled taxpayers partially exempt from federal employment tax, subject to the agreement to treat workers (or a group or group of workers) forward as employees. Participation in this voluntary program requires the taxpayer to meet certain eligibility requirements, apply by filing the required IRS form (8952) and enter into an agreement with the IRS.
Since an employer is not required to pay these assets for independent contractors, it may be tempting to call anyone who works for them as an independent contractor. If everyone only sells their products and gets paid, if it`s sold, they`re an entrepreneur, right? The flip side is that entrepreneurs cannot stop in the middle of a project without taking responsibility for non-execution. Sellers classified as independent contractors do not have Social Security or Medicare taxes withheld from their paychecks. In addition, the company is not required for independent contractors to contribute to the arrears of taxes on social security and Medicare staff taxes. If an independent contractor is indeed an employee, as would be the case with a car salesperson, the work force may report to the IRS the amount of unhapped taxes resulting from the misclassification. 3. See also Ginter v. United States, 815 F.Supp. 1289, 1292 (W.D.Mo.1993) (prescription period expired only after Forms 940 and 941 were submitted, although the taxpayer classified the workers as self-employed and submitted Forms 1099). Companies that carry out and complete the above analyses and are not sure whether a particular worker is an independent worker or contractor should consult their legal or tax advisors.