[IASHRM] Wage question regarding Independent Contractors

[HRALLC at aol.com]

Katie, 
As an independent  contractor and HR consultant, I can tell you that there 
are several other issues  you need to be aware of beyond the overtime pay 
situation. 
The response by Jodi is  “spot on.” In addition, if the organization is 
truly an independent contractor,  they should use their own equipment (computers, 
etc.) and have more than just  your organization as a client. Generally, the 
more control you exert over their  activity, the less the IRS will view them as 
“independent.” As a rule, they  should have their own corporate entity with 
a taxpayer ID number, set their own  schedule, use their own equipment, work 
in their own offices, have multiple  clients, and contract for specific 
products/services with you (as opposed to  receiving general work assignments at an 
hourly rate) to ensure independent  contractor status. The more your exert 
control over their activities (dictate  work hours/ locations, etc.) the less 
likely it is for you (and them) to claim  independent contractor status. You can 
be liable for workers compensation,  unemployment insurance and tax liability 
if you do not meet the independent  contractor status requirements. 
In addition to the  above, having a signed agreement that specifies the above 
items and that states  unequivocally that the outside organization is an 
independent contractor, will  help protect your interests. 
Let me know if you have  any other questions or concerns. 
Steve  Saunders 
Human Resources  Associates – LLC 
P.O.  Box  2462 
Sioux  City, Iowa 51106 
712-293-1160  (Office)



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