My workers meet all the requirements of an independent contractor for IRS purposes. Doesnt that exempt them from state unemployment taxes?
Not necessarily. Nevada Unemployment Compensation Law does not define independent contractor. It uses what is commonly referred to as the ABC test. This test is unique to the Unemployment Compensation Program. Unless otherwise specifically excluded, payment for personal services is deemed subject to unemployment taxes unless the following conditions are met. All three conditions must be met in fact; a written contract alone is not sufficient. The burden of proof rests upon the employer to demonstrate the existence of these conditions: A. The person has been and will continue to be free from control or direction over the performance of the services, both under his contact of service and in fact; and B. The service is either outside the usual course of the business for which the service is performed or that the service is performed outside of all the places of business of the enterprise for which the service is performed; and C. The service is performed in the course of an independently
Related Questions
- My workers meet all the requirements of an independent contractor for IRS purposes. Doesn that exempt them from state unemployment taxes?
- My workers meet all the requirements of an independent contractor for IRS purposes. Doesnt that exempt them from state unemployment taxes?
- Can an Independent Contractor be exempt from our Workers Compensation insurance requirements?
