Employee or Independent Contractor?
Important Facts to Consider
by Mark A. Caldwell, President

Over the past 28 years in working with homecare & hospice clients, the subject of whether to classify workers as employees or independent contractors has come up many occasions.

The first thing you have to consider is how you will justify the classification of these workers to your Workers Compensation auditor, and the I.R.S. The simplest way I can answer this question comes directly from the I.R.S. and the State Compensation Insurance Fund's websites - that is, what level of control do you have over your worker? If you can instruct them how to do their job, or where to be and when to be there, you likely have just passed the threshold that your worker is, indeed, an employee.

In addition, independent contractors are required to have their own liability insurance, business license, workers compensation coverage, etc. and should provide you with certificates of insurance prior to working for you.

I have provided links to a few websites that offer more detailed information. I would also suggest that you consult your attorney prior to classifying your workers so you can avoid any unpleasant conversations with auditors in the future.

 

www.irs.gov/businesses/small/article/0,,id=99921,00.html


Justia Legal Resources for Lawyers

 

CA-Employment-Lawyers.com

 

http://www.scif.com/news/features/print/040609-BuildingSeason.html

*Please note: While the State Compensation Insurance Fund's article references the building trade, the same rules apply for Homecare & Hospice.

 

If you have any questions about the Employee vs Independent contractor issue, please feel free to contact us and we'll be happy to assist you.

The most important thing to remember is to research this issue before classifying anyone as an independent contractor and avoid future headaches.

 

 

 
This information is designed for general informational and descriptive purposes only. The precise wording of each coverage is subject to specific conditions and endorsements of the actual policy issued. Always read your policy very carefully!