Discussion:Employee vs. Contractor?

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Revision as of 22:24, 16 November 2005

Discussion Forum Index --> Tax Questions --> Employee vs. Contractor?

Cpasupport (talk|edits) said:

16 November 2005
S Corp owner runs a limo/taxi business. He owns 5 such limos.

His workers have to pay if they mess up his car (accident) by agreement, but he lets them use his car. He pays them lets say 30% of collections. The workers choose their hours off of the designated upcome jobs list (Shuttle from Airport 8:00p.m.,9:00p.m.).

He's been paying them as contractors but except for the agreement that they reimburse him for damages, they have no risk of loss (they don't carry the insurance, pay for gas, etc.).

Employee vs. Contractor?

Next one. Ethical questin same topic. S Corp Owner/HVAC employer pays HVAC guys to install. They use employers vehichle and work 40 hrs. per week and get install bonuses for efficiency. Some only get the install bonuses but still 99% of the time work with employer. I think they are employees. They are paid as contractors.

I hate to switch the employer to classifying them as employees because he had a previous problem with not paying withholding taxes that has resulted in it being assessed against him personally.

A)Drop client=He pays me and except for this books are decent B)Keep going as contractors & keep signing those tax returns as 100% contractors (Except S Corp owner does pay himself a salary). C)Force the change to employees. D)Anyone?