EMPLOYEE OR INDEPENDENT CONTRACTOR Is my chauffeur an employee or independent contractor?
• You are best off to put all employees on your payroll system. This is a nine part list which must be met before a person can be considered an independent contractor rather than an employee. To qualify as an independent contractor and not an employee, a person must meet and maintain all nine of the following requirements: • Maintain a separate business. • Obtain a Federal Employer Identification number from the Federal Internal Revenue Service (IRS) or have filed business or self-employment income tax returns with the IRS based on the work or service in the previous year. • Operate under specific contracts. • Be responsible for operating expenses under the contracts. • Be responsible for satisfactory performance of the work under the contracts. • Be paid per contract, per job, by commission or by competitive bid. • Be subject to profit or loss in performing the work under the contracts. • Have recurring business liabilities and obligations. • Be in a position to succeed or fail if bus
