By: Alan H. Morgan, CPL (713)

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "By: Alan H. Morgan, CPL amorgan1@flash.net (713) 805 6851"

Transcription

1 By: Alan H. Morgan, CPL (713)

2 The independent contractor status of land professionals has been challenged by the Internal Revenue Service and state employment agencies for many years.

3 The IRS and state agencies rarely are successful in their audits of independent landmen when both the independent landman and their payor have recognized the tests that have been applied by those agencies and have satisfied the requirements which determine an independent landman s independent contractor status.

4 Who are independent contractors? Independent contractors are workers who are engaged in their own independent enterprise.

5 Why do the IRS and state agencies care about the independent contractor status of independent landmen? The General Accounting Office has determined that independent contractors generally under report income and over report expenses.

6 In addition, the IRS has found that independent contractors generally do no make proper quarterly payments of withholding and FICA, depriving the government of the use of those funds. The IRS has also found that it is easier to go after the payors and try to reclassify independent contractors as employees, thereby forcing payors to begin the withholding of income taxes and FICA, than it is to go after independent contractors and make them pay the taxes they owe.

7 It is also important to note that once an independent contractor has been reclassified as an employee, the IRS can disallow those expenses previously taken by the independent contractor leaving the independent contractor subject to additional taxes, interest and penalties.

8 How do most audits arise? Most audits conducted by the IRS or state agency occur when an independent contractor files a claim for unemployment compensation benefits with the appropriate state agency and that agency finds that the payor has paid no withholding tax on that particular worker

9 As a result, the state agency comes to audit the payor and wants to determine why the worker was treated as an independent contractor rather than an employee. Other common audit situations arise through random selection by the IRS or state agency, a disgruntled former worker reporting a payor to the IRS or state agency, workers compensation audit or an overtime audit.

10 The IRS or state agency applies a Common Law 20 Point Factor Test to determine whether a worker is an employee or an independent contractor. The 20 Point Common Law Test is designed to show whether the payor has the right to control and direct the worker not only as to the result to be accomplished but also as to the details and means by which that result is to be accomplished.

11 The issue of whether the payor has the right to control and direct a workers result is the most important factor that the IRS and state agency use in determining the independent contractor status of a worker.

12 It is very difficult to satisfy all 20 factors to determine the independent contractor status. Each factor will be analyzed. It is important to note that factors one through ten generally carry more weight than others and that it will be impossible for an independent landman to satisfy all 20 points. The 20 Point Common Law Factors are as follows:

13 Instructions: If the worker must follow instructions on when, where and how to perform his (used herein in a generic connotation) work, then this is evidence of control which is indicative of employee status.

14 Services rendered personally: A worker who is personally required to render services has the appearance of employee status. The ability to assign or delegate the work by the worker is important. Continuing Relationship: A continuing relationship between the worker and the employer is evidence of employee status. Both regularity and the duration of the relationship are taken into consideration.

15 Doing work on payors premises: Use of the service recipient s premises and office equipment may constitute evidence of control and employee status. Evidence of payment: The fact that a worker is being paid at regular intervals is evidence of control and employee status.

16 Significant Investment: If a worker does not invest in the facilities and/or equipment used in the performance of services, this is evidence of employee status. Realization of profit or loss: If a worker is compensated at a fixed rate for this service, regardless of the profitability of the operation, this is evidence of employee status.

17 Working for more than one firm at a time: When a worker performs services for no more than one firm at a time, this is evidence of employee status. Right to discharge: A worker who can be discharged at any time is usually perceived to be an employee. An independent contractor generally can be discharged only for failure to comply with the terms of his contract.

18 Training: The more training a worker receives from the employer, the more likely that the worker is an employee. Hiring, supervising and paying assistants: If a payor hires, supervises and pays a worker s assistants, then this is evidence of employee status.

19 Set hours of work: If a worker is required to perform services during set hours, this is evidence of control and employee status. Full time required: If the worker is required to devote full time efforts to the employer, this is evidence of control and employee status.

20 Order of sequence set: If a worker is required to perform tasks in a set way and to follow set routines and schedules, this is evidence of employee status Oral or written reports: A requirement that the worker submit regular reports to the employer is evidence of employee status.

21 Payment of business and/or traveling expenses: If a worker s expenses are paid or reimbursed by the payor, this is evidence of employee status. Furnishing of tools and materials: A worker who is furnished tools and materials is typically controlled by the payor, which is evidence of employee status.

22 Making services available to the general public: If services are not offered to the general public, this is indicative of employee status. Right to terminate: A worker who may terminate his relationship with the payor at any time evidences employee status.

23 There is a second criterion that the IRS can use to determine the independent contractor status of independent landmen. Section 530, the Safe Harbor provision, of the Revenue Act of 1978 allows payors to treat workers as independent contractors regardless of the common law test.

24 To obtain the benefits of Section 530 a payor must meet a three part test:

25 A payor must meet all filing requirements: A payor must issue 1099 s to the worker claimed as an independent contractor and at no time given the worker a W 2, withheld from the worker s compensation, paid FICA or FUTA on the worker and/or filed a Form 940, 941 with the worker s name on it.

26 Consistent treatment: Payor must consistently treat all workers in the class in question as independent contractors. A payor should not change the status of an independent contract to employee and back again. For example, it is advisable to treat all field landmen as independent contracts or as employees, but not some field landmen as independent contractors and others as employees.

27 Reasonable basis test: The payor must have reasonable basis for treating the worker as an independent contractor. Case law, IRS rulings, Technical Advice Memorandum, Private Letter Ruling issued to the payor and/or prior state audit on independent contractor or employee issue are reasonable basis for treating a worker as an independent contractor.

28 In addition, the IRS will consider a long standing practice in a significant segment of the industry as a reasonable basis for treating a worker as an independent contractor. The proof needed to substantiate a long standing practice in the industry can be affidavits from industry leaders, a study conducted by a recognized accounting firm and/or letter from the executive director of your professional association.

29 AAPL has recognized and is addressing the independent contractor issue as it pertains to landmen. AAPL has done several things that should help provide landmen protection of Section 530 of the Revenue Act of 1978.

30 AAPL has passed legislation in Texas, New Mexico, Oklahoma, Louisiana, Colorado, Montana, and North Dakota amending the states respective Unemployment Compensation Acts to exclude independent contract landmen.

31 AAPL was responsible for a 1994 survey of AAPL s membership, conducted by KMPG Peat Marwich, which recognizes the long standing industry practice of treating independent contract landmen as independent contractors.

32 If you come under audit by the IRS or state agency it is critical that you seek expert assistance from a qualified attorney and/or accountant.

33 The AAPL is not able to provide any legal or accounting assistance to its membership. AAPL can make available, to its members, a copy of the 1994 KMPG Peat Marwick Survey and a letter or affidavit from Executive Vice President Martin Schardt, CPL which substantiates the long standing industry practice of treating independent contract landmen as independent contractors.

34 It should also be pointed out that if a state that you are doing business in recognized the independent contractor status of independent contract landmen through the passage of legislation, this to should be a reasonable basis for treating and independent landman as an independent contractor.

35 There are several things that you can do to reduce your risk of having your independent landmen reclassified as an employee by the IRS or state agency. They are as follows:

36 The independent landman can incorporate or setup a trust or partnership and obtain a Federal Tax Identification Number. If this is impractical, the independent landman could file an assumed name at the county courthouse and then seek a Federal Tax Identification Number.

37 Have a written contract with each independent contractor. It is important to use a well written contract. Some contracts offer little protection and are clearly employment contracts, not a contract for and independent contractor. AAPL offers its Contract for Land Related Services through its Fort Worth office. Payors should always issue 1099 s to its independent contractors.

38 Independent landmen should always have their own letterhead, stationary and business cards with their name stated and not the payors. A state auditor stated that he usually walks right back out the front door if the independent contractor has business cards, stationary and a written contract with the payor.

39 An independent contractor should advertise his services. This can be accomplished many ways through Yellow Pages, Landman Magazine, AAPL Membership Directory or local association directory or newsletter. An independent landman should work for two or more different payors over the course of a year, receiving more than one 1099 at the end of the year.

40 An independent landman should have his own office, either inside his home or out. If the independent landman has an office on the payor s premises, he should pay rent for the office, furniture and equipment and be billed for all the services he uses.

41 Payor should try to pay by the completion of a task, do not pay by the hour or month. Payor should not provide any benefits to the independent landman such as sick leave or paid vacation.

42 Payor should not provide detailed instructions, establish work hours, routine or schedule and require regular reports, call ins, etc.

43 The independent contract issue is impacting many professions in and out of the oil and gas industry. Arbitrary enforcement of the issue by the IRS and/or state agencies can have an impact on the way we traditionally conduct our business in the oil and gas industry.

Misclassified? The Fight Against Independent Contractors

Misclassified? The Fight Against Independent Contractors Misclassified? The Fight Against Independent Contractors Christine E. Reinhard August 15, 2014 All Rights Reserved Schmoyer Reinhard LLP If It Looks Like a Duck 1 Questions of the Day Why are independent

More information

GUIDELINES FOR DETERMINING EMPLOYEE OR INDEPENDENT CONTRACTOR RELATIONSHIPS

GUIDELINES FOR DETERMINING EMPLOYEE OR INDEPENDENT CONTRACTOR RELATIONSHIPS GUIDELINES FOR DETERMINING EMPLOYEE OR INDEPENDENT CONTRACTOR RELATIONSHIPS Under University policy, contracts will generally only be entered into with independent contractors (IC). Independent contractors

More information

Independent Contractor or Employee? Worker Classification Rules under IRS Guidelines

Independent Contractor or Employee? Worker Classification Rules under IRS Guidelines Independent Contractor or Employee? Worker Classification Rules under IRS Guidelines Christine F. Miller (512) 495-6039 (512) 505-6339 FAX Email: cmiller@mcginnislaw.com 1 Introduction What do AT&T, JPMorgan

More information

Employee vs. Independent Contractor: Protecting Your Company

Employee vs. Independent Contractor: Protecting Your Company Attorney Stephen A. DiTullio DeWitt Ross & Stevens S.C. 2 E. Mifflin Street, Suite 600 Madison, WI 53703 (608) 252 9362 sad@dewittross.com 1 Background Facts & Statistics 60% of all businesses use independent

More information

Employee or Independent Contractor? Avoiding Misclassification. By: Kristin N. Zielmanski

Employee or Independent Contractor? Avoiding Misclassification. By: Kristin N. Zielmanski Employee or Independent Contractor? Avoiding Misclassification By: Kristin N. Zielmanski Whether an individual working for your business qualifies as an employee or an independent contractor is a question

More information

Employee or Independent Contractor

Employee or Independent Contractor BACKGROUND: Employee or Independent Contractor Recent tax examinations of universities by the Internal Revenue Service (IRS) have emphasized the need to properly distinguish payments to individuals as

More information

Agenda. IRS Payroll Tax Audit Initiatives. Auditor of State David Yost 2011 Local Government Official s Conference Employment Tax Update

Agenda. IRS Payroll Tax Audit Initiatives. Auditor of State David Yost 2011 Local Government Official s Conference Employment Tax Update Auditor of State David Yost 2011 Local Government Official s Conference Employment Tax Update April 7, 2011 Janice M. Zajac, CPA, MBA, MB Agenda IRS Payroll Tax Audit Initiatives Independent Contractors

More information

1. PURPOSE. 1.2 This policy statement applies to all service providers except temporary personnel who are paid through an employment agency.

1. PURPOSE. 1.2 This policy statement applies to all service providers except temporary personnel who are paid through an employment agency. Memo to: All UH-Downtown/PS Holders UH-Downtown/PS 02.A.23 Issue No. 3 From: William Flores, President Effective date: 07/09/2015 Page 1 of 5 Subject: Employees and Independent Contractors 1. PURPOSE 1.1

More information

58 JOURNAL OF COURT REPORTING / APRIL 2001

58 JOURNAL OF COURT REPORTING / APRIL 2001 ?? 58 JOURNAL OF COURT REPORTING / APRIL 2001 B Y P E T E R W A C H T Independent contractor status remains a hot issue for freelance reporters. If you don t know and follow the requirements, an unpleasant

More information

A Taxing Question: Are CFI's employees or independent contractors?

A Taxing Question: Are CFI's employees or independent contractors? A Taxing Question: Are CFI's employees or independent contractors? The question of proper classification of workers as either employees or independent contractors is a continuing source of controversy

More information

January 19, 2007. Comptrollers Office. Independent Contractor vs. Employee Discussion EXCERPTS FROM IRS. Rev. Rul. 87-41 1987-1 C.B.

January 19, 2007. Comptrollers Office. Independent Contractor vs. Employee Discussion EXCERPTS FROM IRS. Rev. Rul. 87-41 1987-1 C.B. January 19, 2007 Comptrollers Office Independent Contractor vs. Employee Discussion EXCERPTS FROM IRS Rev. Rul. 87-41 1987-1 C.B. 296 Section 3111 -- Social Security Tax Liability Summary THE INTERNAL

More information

SPECIAL REPORT CLASSIFYING WORKERS AS EMPLOYEES OR INDEPENDENT CONTRACTORS (04-03-14)

SPECIAL REPORT CLASSIFYING WORKERS AS EMPLOYEES OR INDEPENDENT CONTRACTORS (04-03-14) SPECIAL REPORT CLASSIFYING WORKERS AS EMPLOYEES OR INDEPENDENT CONTRACTORS (04-03-14) This Special Report was written by Daniel P. Hale, J.D., CPCU, ARM, CRM, LIC, AIC, AIS, API of Marsh & McLennan Agency

More information

NORTH CAROLINA STATE UNIVERSITY EMPLOYEE VS. INDEPENDENT CONTRACTOR REFERENCE GUIDE

NORTH CAROLINA STATE UNIVERSITY EMPLOYEE VS. INDEPENDENT CONTRACTOR REFERENCE GUIDE JULY 1, 2014 NORTH CAROLINA STATE UNIVERSITY EMPLOYEE VS. INDEPENDENT CONTRACTOR REFERENCE GUIDE DWAINE COOK NC STATE UNIVERSITY Campus Box 7205 Raleigh, NC 27695 Contents EMPLOYEE VS. INDEPENDENT CONTRACTOR

More information

Independent Contractors: Utah

Independent Contractors: Utah CHRISTINA M. JEPSON AND NICOLE G. FARRELL, PARSONS BEHLE & LATIMER, WITH PRACTICAL LAW LABOR & EMPLOYMENT A Q&A guide to state law on independent contractor status for private employers in Utah. This Q&A

More information

INDEPENDENT CONTRACTOR vs. EMPLOYEE:

INDEPENDENT CONTRACTOR vs. EMPLOYEE: INDEPENDENT CONTRACTOR vs. EMPLOYEE: IMPROPERLY TREATING A D.C. OR LMT AS AN INDEPENDENT CONTRACTOR INSTEAD OF AN EMPLOYEE CAN LEAD TO AN IRS AUDIT, FINES, PENALTIES AND PAYMENT OF UNCOLLECTED TAXES By,

More information

UNIVERSITY OF HOUSTON SYSTEM ADMINISTRATIVE MEMORANDUM. SECTION: Human Resources NUMBER: 02.A.24

UNIVERSITY OF HOUSTON SYSTEM ADMINISTRATIVE MEMORANDUM. SECTION: Human Resources NUMBER: 02.A.24 UNIVERSITY OF HOUSTON SYSTEM ADMINISTRATIVE MEMORANDUM SECTION: Human Resources NUMBER: 02.A.24 AREA: General SUBJECT: Employees and Independent Contractors 1. PURPOSE 1.1. This document provides guidelines

More information

This section incorporates the IRS guidelines that are currently in effect.

This section incorporates the IRS guidelines that are currently in effect. Guidelines on How to Determine the Classification of Independent Contractors versus Employees Overview The University classifies and pays individuals who provide services as employees, unless the nature

More information

Misclassifying Employees vs. Independent Contractors: A New World of Forgiveness By Juliet L. Fink, JD

Misclassifying Employees vs. Independent Contractors: A New World of Forgiveness By Juliet L. Fink, JD Misclassifying Employees vs. Independent Contractors: A New World of Forgiveness By Juliet L. Fink, JD On Sept. 21, 2011, the IRS announced a new voluntary disclosure program, the Voluntary Classification

More information

Independent Contractor vs. Employer; Identifying the correct classification

Independent Contractor vs. Employer; Identifying the correct classification Independent Contractor vs. Employer; Identifying the correct classification Version 3A February 15, 2013 Disclaimer: This guide is solely intended to be a free advisory source. All the information contained

More information

Classification of Independent Contractors versus Employees

Classification of Independent Contractors versus Employees Classification of Independent Contractors versus Employees Overview The University classifies and pays individuals who provide services as Employees, unless the nature of the services and other circumstances

More information

JAN 2 2 2016. changing and increasing numbers of individuals are facing. decisions on whether to choose to become entrepreneurs and go

JAN 2 2 2016. changing and increasing numbers of individuals are facing. decisions on whether to choose to become entrepreneurs and go THE SENATE TWENTY-EIGHTH LEGISLATURE, 0 STATE OF HAWAII JAN 0 A BILL FOR AN ACT S.B. NO.Mf RELATING TO EMPLOYMENT SECURITY. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 0 SECTION. The legislature

More information

Independent Contracting

Independent Contracting Independent Contracting USED BY PERMISSION From AAPA: 950 North Washington Street, Alexandria, VA 22314 www.aapa.org Deciding to practice as an independent contractor requires consideration of many factors.

More information

Clergy and Non Clergy Compensation

Clergy and Non Clergy Compensation Clergy and Non Clergy Compensation Parish treasurers are responsible for monitoring the salary and housing compensation for clergy. They need to keep abreast of the median family income for their area.

More information

North Carolina Department of State Treasurer

North Carolina Department of State Treasurer RICHARD H. MOORE TREASURER North Carolina Department of State Treasurer State and Local Government Finance Division and the Local Government Commission T. Vance Holloman DEPUTY TREASURER Memorandum #1079

More information

PRESENT LAW AND BACKGROUND RELATING TO WORKER CLASSIFICATION FOR FEDERAL TAX PURPOSES

PRESENT LAW AND BACKGROUND RELATING TO WORKER CLASSIFICATION FOR FEDERAL TAX PURPOSES PRESENT LAW AND BACKGROUND RELATING TO WORKER CLASSIFICATION FOR FEDERAL TAX PURPOSES Scheduled for a Public Hearing before the SUBCOMMITTEE ON SELECT REVENUE MEASURES and the SUBCOMMITTEE ON INCOME SECURITY

More information

LAYPERSONS: EMPLOYEE OR AN INDEPENDENT CONTRACTOR?

LAYPERSONS: EMPLOYEE OR AN INDEPENDENT CONTRACTOR? LAYPERSONS: EMPLOYEE OR AN INDEPENDENT CONTRACTOR? Numerous functions in the life of the church have been performed by volunteers. For a variety of reasons many key roles in the life of congregations have

More information

1. Is there a difference between an employee and a subcontractor?

1. Is there a difference between an employee and a subcontractor? ? Subcontractors Frequently Asked Questions Text Publications & Forms Internal Revenue Code & Treasury Regulations Revenue Procedures & Revenue Rulings 1. Is there a difference between an employee and

More information

Independent Contractors RF Policies and Procedures

Independent Contractors RF Policies and Procedures Office of Grants Management ARE YOU INDEPENDENT? Independent Contractors RF Policies and Procedures February 24, 2009 1 What Are Our Goals? Defining Independent Contractors (IC) Identifying and completing

More information

Identifying Your Company s Employees: Its Tougher Than You Think!

Identifying Your Company s Employees: Its Tougher Than You Think! Identifying Your Company s Employees: Its Tougher Than You Think! Independent Contractors Joint Employers 1 2011 Seyfarth Shaw LLP Independent Contractors Massachusetts Three-Prong Test: Freedom from control

More information

6.5.2 Individual Consultants

6.5.2 Individual Consultants 6.5.2 Individual Consultants There are legal distinctions and ramifications between retaining a consultant and hiring an employee. For example, the State incurs liabilities for withholding and/or the payment

More information

Independent Contractor? or employee?

Independent Contractor? or employee? Independent Contractor? or employee? W H AT Y O U N E E D T O K N O W ABOUT HIRING INDEPENDENT CONTRACTORS What is Worker Misclassification? At first glance, it might be hard they to tell the difference

More information

Independent Contractors, Employees, and the General Welfare Doctrine. Presented by Sandy Abalos, CPA, MA Corrine Wilson, CPA

Independent Contractors, Employees, and the General Welfare Doctrine. Presented by Sandy Abalos, CPA, MA Corrine Wilson, CPA Independent Contractors, Employees, and the General Welfare Doctrine Presented by Sandy Abalos, CPA, MA Corrine Wilson, CPA Introduction Sandy Abalos, CPA, MA Delegate to 1995 White House Conference on

More information

The Massachusetts Independent Contractor Law: Serious Problems and Difficult Choices for Businesses in Massachusetts

The Massachusetts Independent Contractor Law: Serious Problems and Difficult Choices for Businesses in Massachusetts The Massachusetts Independent Contractor Law: Serious Problems and Difficult Choices for Businesses in Massachusetts By Robert M. Shea MORSE BARNES -BROWN PENDLETON PC The law firm built for business.

More information

Employee vs. Independent Contractor

Employee vs. Independent Contractor Protect Your Business from the Costs of Misclassification Possible Advantages of Working with an Independent Contractor Costs. There are several ways you ll save by hiring independent contractors. You

More information

Employee Misclassification & Unemployment Insurance Audits

Employee Misclassification & Unemployment Insurance Audits Employee Misclassification & Unemployment Insurance Audits 2009 National Unemployment Insurance Conference Tom Crowley, UI Tax Chief USDOL/ETA/OUI Urban Myths Dispelling Falsehoods, Rumors & Innuendo Employers

More information

Independent Contractor Versus Employee Status

Independent Contractor Versus Employee Status 12 Independent Contractor Versus Employee Status Failing to appropriately classify a worker as an employee or an independent contractor can have serious consequences. Companies that misclassify workers

More information

Insurance Audit Form HELP

Insurance Audit Form HELP Top of the form has important information so we know who the insurance company is and exactly what policy year is being audited. If you save the form you will only need to do this once for every insurance

More information

IRS Looks Closely at Independent Contractors

IRS Looks Closely at Independent Contractors Hospitality Review Volume 11 Issue 1 Hospitality Review Volume 11/Issue 1 Article 2 1-1-1993 IRS Looks Closely at Independent Contractors John M. Tarras Michigan State University, shbsirc@msu.edu Follow

More information

- NEW HAMPSHIRE EMPLOYMENT SECURITY

- NEW HAMPSHIRE EMPLOYMENT SECURITY - NEW HAMPSHIRE EMPLOYMENT SECURITY QUESTIONNAIRE FOR DETERMINING INDEPENDENT SUBCONTRACTOR STATUS UNDER RSA 282-A:9. I11 (a)(bmc) RSA 282-A:9 111. Services performed by an individual for wages shall be

More information

SECURING AND PAYING FOR CONSULTANTS AND INDEPENDENT CONTRACTORS

SECURING AND PAYING FOR CONSULTANTS AND INDEPENDENT CONTRACTORS SECURING AND PAYING FOR CONSULTANTS AND INDEPENDENT CONTRACTORS PURPOSE The primary purpose of this policy and procedure statement is to guide the Seminary in three areas: (1) To properly classify employees,

More information

Independent Contractor vs. Employee: Walking a Fine Line BY BOB NIEMAN May 13, 2009

Independent Contractor vs. Employee: Walking a Fine Line BY BOB NIEMAN May 13, 2009 Page 1 of 7 ENERGIES: Nat Gas: 4 606 DTH Independent Contractor vs. Employee: Walking a Fine Line BY BOB NIEMAN May 13, 2009 Sponsored By: Is that attendant who handles your coin laundry s wash-dry-fold

More information

EDD Factors Used to Determine Whether a Worker is an Employee or an Independent Contractor

EDD Factors Used to Determine Whether a Worker is an Employee or an Independent Contractor For publication by Robert S. Schriebman, SJD Taxation. EDD Factors Used to Determine Whether a Worker is an Employee or an Independent Contractor We recently published an article on our website entitled

More information

James R. Favor & Company

James R. Favor & Company Sigma Alpha Epsilon Fraternity Independent Contractors A Review of Exposures & Risk Management Recommendations Since 1979 James R. Favor & Company has been developing and providing effective risk management

More information

James R. Favor & Company

James R. Favor & Company James R. Favor & Company Phi Delta Theta Fraternity Minimum Insurance Requirements for Independent Contractors Before Independent Contractor agreements are finalized and any work is performed, Written

More information

Warwick Public Schools 34 Warwick Lake Ave Warwick, RI 02889 INDEPENDENT CONTRACTOR AGREEMENT

Warwick Public Schools 34 Warwick Lake Ave Warwick, RI 02889 INDEPENDENT CONTRACTOR AGREEMENT Warwick Public Schools 34 Warwick Lake Ave Warwick, RI 02889 INDEPENDENT CONTRACTOR AGREEMENT This agreement is between Warwick Public Schools and the Independent Contractor (IC) as herein named: IC s

More information

Contracting and purchase of Professional Services (Independent Contractors or External Consultants)

Contracting and purchase of Professional Services (Independent Contractors or External Consultants) Effective Date: January 1, 1995 Updated: October 7, 2009 Updated: May 5, 2013 Updated: February 4, 2015 Foreword Contracting and purchase of Professional Services (Independent Contractors or External Consultants)

More information

WORKER CLASSIFICATION

WORKER CLASSIFICATION 100 Arbor Drive, Suite 108 Christiansburg, VA 24073 Voice: 540-381-9333 FAX: 540-381-8319 www.becpas.com Providing Professional Business Advisory & Consulting Services Douglas L. Johnston, II djohnston@becpas.com

More information

Employee or Independent Contractor?

Employee or Independent Contractor? Employee or Independent Contractor? Introduction An important question arises when a church hires, retains or selects a new person to perform a particular job for the church - is the person an employee

More information

HIRING AND MANAGING INDEPENDENT CONTRACTORS

HIRING AND MANAGING INDEPENDENT CONTRACTORS HIRING AND MANAGING INDEPENDENT CONTRACTORS AVOIDING THE COSTLY MISTAKES OF MISCLASSIFICATION Abstract The hiring and managing of independent contractors has become one of today s most pressing issues

More information

This is a sample Memorandum of Agreement. Independent contractors may find this to be a useful tool.

This is a sample Memorandum of Agreement. Independent contractors may find this to be a useful tool. This is a sample Memorandum of Agreement. Independent contractors may find this to be a useful tool. When you perform services under your independent contractor certification, you are acknowledging that

More information

Determination of Employment Work Status for Purposes of State of California Employment Taxes and Personal Income Tax Withholding

Determination of Employment Work Status for Purposes of State of California Employment Taxes and Personal Income Tax Withholding Determination of Employment Work Status for Purposes of State of California Employment Taxes and Personal Income Tax Withholding Purpose This form is to be used by businesses who would like to get a determination

More information

INDEPENDENT CONTRACTOR AGREEMENT - INDIVIDUAL

INDEPENDENT CONTRACTOR AGREEMENT - INDIVIDUAL INDEPENDENT CONTRACTOR AGREEMENT - INDIVIDUAL This Independent Contractor Agreement ( Agreement ) is entered into by and between ORAL ROBERTS UNIVERSITY, 7777 S. Lewis, Tulsa OK 74171, ( ORU ) and, an

More information

EMPLOYEE REPORTING REQUIREMENTS. submitted no later than the next day which is not a Saturday, Sunday or legal holiday. An employer, however,

EMPLOYEE REPORTING REQUIREMENTS. submitted no later than the next day which is not a Saturday, Sunday or legal holiday. An employer, however, EMPLOYEE REPORTING REQUIREMENTS Employees who receive $20 or more per calendar month in tips must report their tip income to their employer. The report is required to be in writing and be submitted to

More information

Consultant and Independent Contractor Services Policies & Procedures

Consultant and Independent Contractor Services Policies & Procedures Consultant and Independent Contractor Services Policies & Procedures Effective Date: January 1, 1995 Updated: October 7, 2009 Table of Contents Foreword Purpose of Policy and Procedures How to Use the

More information

How to Create a Payroll Procedures Manual! Presented by Max Muller!

How to Create a Payroll Procedures Manual! Presented by Max Muller! How to Create a Payroll Procedures Manual! Presented by Max Muller! Overview! How to put it all together! Using the terminology! Employee distinction! How to eliminate improper actions! When to make an

More information

The Small Business Guide To Employment Taxes

The Small Business Guide To Employment Taxes The Small Business Guide To Employment Taxes Roanoke Regional Small Business Development Center 210 S. Jefferson Street Roanoke, VA 24011 www.roanokesmallbusiness.org Roanoke Small Business Development

More information

Implementing A Workers Compensation Program

Implementing A Workers Compensation Program Implementing A Workers Compensation Program For Your Local Association Provided by Educators Insurance Agency, Inc. Insurance@1EIA.com 888.908.6822 Contents 1. MTA Letter to Local Presidents and Treasurers

More information

PALOMAR COMMUNITY COLLEGE DISTRICT AGREEMENT WITH INDEPENDENT CONTRACTOR

PALOMAR COMMUNITY COLLEGE DISTRICT AGREEMENT WITH INDEPENDENT CONTRACTOR PALOMAR COMMUNITY COLLEGE DISTRICT AGREEMENT WITH INDEPENDENT CONTRACTOR THIS AGREEMENT is made and entered into this day of by and between the Palomar Community College District, hereinafter called "District",

More information

CONSULTING AGREEMENT

CONSULTING AGREEMENT CONSULTING AGREEMENT Agreement No. 2000398 Agreement dated 3/28/2000 by and between UserEdge Technical Personnel. ("USEREDGE") and CONSULTANT S CO., Tax ID No.99-9999999, including individually and collectively,

More information

T.C. Memo. 2007-346 UNITED STATES TAX COURT. JUAN RAMIREZ, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent

T.C. Memo. 2007-346 UNITED STATES TAX COURT. JUAN RAMIREZ, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent T.C. Memo. 2007-346 UNITED STATES TAX COURT JUAN RAMIREZ, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 12139-06. Filed November 26, 2007. Juan Ramirez, pro se. Milton B. Blouke

More information

Oklahoma Income Tax Withholding Tables

Oklahoma Income Tax Withholding Tables Oklahoma Income Tax Withholding Tables 2015 Effective Date: January 1, 2015 Oklahoma Tax Commission 2501 North Lincoln Boulevard Oklahoma City, Oklahoma 73194 Packet OW-2 January 2015 Table of Contents

More information

Ministerial Tax Issues

Ministerial Tax Issues Ministerial Tax Issues Answers to Common Questions Table of contents Introduction......................................................1 Who is a minister for tax purposes?................................2

More information

Independent Contractor vs. Employee by Sanford C. Botkin, CPA, Esq Sanford C. Botkin

Independent Contractor vs. Employee by Sanford C. Botkin, CPA, Esq Sanford C. Botkin Independent Contractor vs. Employee by Sanford C. Botkin, CPA, Esq. 2001-2004 Sanford C. Botkin Part I: Overview Introduction: One of the biggest and thorniest problems facing both businesses and the IRS

More information

federal unemployment insurance (FUTA) You owe the federal government 0.8% of the Taxes

federal unemployment insurance (FUTA) You owe the federal government 0.8% of the Taxes ALANCE FINDING A BALANCE FINDING A BALANCE FINDING A BALANCE FINDING A BALANCE FINDING A BALANCE FINDING A BALANCE FINDING A BALANCE FINDIN DING A BALANCE FINDING A BALANCE FINDING A BALANCE FINDING A

More information

NEED HELP? CALL TOLL FREE AT 1-888-690-0985

NEED HELP? CALL TOLL FREE AT 1-888-690-0985 Public Partnerships, LLC Financial Administration Services 6 Admiral s Way Chelsea, MA 02150 Phone 1-888-690-0985 TTY 1-800-360-5899 Administrative Fax 1-866-254-9729 Choices.prequal@pcgus.com Dear Employer:

More information

Not Knowing How To Manage the Pieces will Cost You Money

Not Knowing How To Manage the Pieces will Cost You Money Not Knowing How To Manage the Pieces will Cost You Money 1 Table of Content Section Page Executive Summary 3 Your Responsibilities 4 Employee Taxes 5 Employer Taxes 6 Social Security Tax 7 Medicare Tax

More information

ASK THE EXPERTS. Customer Service

ASK THE EXPERTS. Customer Service Ask the Experts If you ve got payroll and tax filing questions, we ve got answers! Read through our list of frequently asked questions below or if you can t find what you re looking for, please send your

More information

Subcontractors. Behavioral Control Instructions Example Training

Subcontractors. Behavioral Control Instructions Example Training Subcontractors Click here for the full text or select the subject area you want to review from the list. Behavioral Control Instructions Example Training Financial Control Significant Investment Example

More information

NANNYCHEX PO Box 4276 Greenwood Village, CO 80155 303-770-5570 1-877-626-6924 nannychex@aol.com www.nannychex.com

NANNYCHEX PO Box 4276 Greenwood Village, CO 80155 303-770-5570 1-877-626-6924 nannychex@aol.com www.nannychex.com Your 2014 Nanny Tax and Insurance Obligations SOCIAL SECURITY AND MEDICARE TAXES (FICA) Employer s and Nanny s Expense You are required to withhold Social Security and Medicare taxes when you pay a household

More information

INDEPENDENT CONTRACTOR AGREEMENT (Between Broker and Licensee)

INDEPENDENT CONTRACTOR AGREEMENT (Between Broker and Licensee) INDEPENDENT CONTRACTOR AGREEMENT (Between Broker and Licensee) This Independent Contractor Agreement ( Agreement ), is made between Realtyka LLC ( Broker ), operating under the assumed name Real and (

More information

The P.A. MANUAL. Your key to working with licensed and unlicensed real estate personal assistants ILLINOIS ASSOCIATION OF REALTORS

The P.A. MANUAL. Your key to working with licensed and unlicensed real estate personal assistants ILLINOIS ASSOCIATION OF REALTORS The P.A. MANUAL Your key to working with licensed and unlicensed real estate personal assistants ILLINOIS ASSOCIATION OF REALTORS Published by the Illinois Association of REALTORS 522 South Fifth Street

More information

Leased Employees and Employee Classification

Leased Employees and Employee Classification llllcharles C. Shulman, Esq., LLC Employee Benefits, Employment & Executive Compensation Law www.ebeclaw.com www.employeebenefitslaw.info NJ Office & Mailing Address 632 Norfolk St., Teaneck, NJ 07666

More information

Guidelines for Determining Worker Status Translating and Interpreting Industry

Guidelines for Determining Worker Status Translating and Interpreting Industry New York State Department of Labor Unemployment Insurance Division State Office Campus, Building 12 Albany, NY 12240 Guidelines for Determining Worker Status Translating and Interpreting Industry The following

More information

PAYCHEX. Mastering Payroll Compliance. 10 Missteps to Avoid

PAYCHEX. Mastering Payroll Compliance. 10 Missteps to Avoid PAYCHEX Mastering Payroll Compliance 10 Missteps to Avoid Executive Summary. Businesses pay government agencies millions of dollars each year in labor and tax compliance penalties. And, in this economy

More information

THEME: INDEPENDENT CONTRACTOR vs. EMPLOYEE. By John W. Day, MBA

THEME: INDEPENDENT CONTRACTOR vs. EMPLOYEE. By John W. Day, MBA THEME: INDEPENDENT CONTRACTOR vs. EMPLOYEE By John W. Day, MBA ACCOUNTING TERM: Independent Contractor An individual who contracts with an entity to perform a service independent of the entity s management

More information

PRIVATE FOUNDATION CAUTION: The purposes of this memorandum are to assist you, the directors of your private foundation, and your accountant in:

PRIVATE FOUNDATION CAUTION: The purposes of this memorandum are to assist you, the directors of your private foundation, and your accountant in: CHERRY CREEK CORPORATE CENTER 4500 CHERRY CREEK DRIVE SOUTH #600 DENVER, CO 80246-1500 303.322.8943 WWW.WADEASH.COM DISCLAIMER Material presented on the Wade Ash Woods Hill & Farley, P.C., website is intended

More information

Payroll Taxes: A Webinar to Help Your Nonprofit Understand What It Needs to Know About FICA Taxes and Income Tax Withholding

Payroll Taxes: A Webinar to Help Your Nonprofit Understand What It Needs to Know About FICA Taxes and Income Tax Withholding Payroll Taxes: A Webinar to Help Your Nonprofit Understand What It Needs to Know About FICA Taxes and Income Tax Withholding Marianna G. Dyson February 26, 2013 Today s Agenda -- Employer s Responsibilities

More information

M E M O R A N D U M LIMITED LIABILITY: KNOW THE LIMITS

M E M O R A N D U M LIMITED LIABILITY: KNOW THE LIMITS M E M O R A N D U M TO: The Members or Managers FROM: Terri L. Giampetroni Legal Strategies, P.C. You have chosen to do business through the use of a Michigan limited liability company. Your company provides

More information

Agreement for Services

Agreement for Services Agreement for Services This Agreement is entered into as of the day of, 20, between Inc. ( the Company ) and ( the Contractor ). The purposes of this agreement are to define the rights and obligations

More information

A recent Treasury Inspector General for Tax Administration

A recent Treasury Inspector General for Tax Administration Daily Tax Report Reproduced with permission from Daily Tax Report, 192 DTR J-1, 10/3/14. Copyright 2014 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com Tax Audits As the Internal

More information

10 Facts About the Affordable Care Act and Worker Classification

10 Facts About the Affordable Care Act and Worker Classification Latham & Watkins Tax Controversy Practice Number 1611 November 18, 2013 10 Facts About the Affordable Care Act and Worker Classification Businesses subject to the Affordable Care Act s shared responsibility

More information

The legal ramifications of classifying employment: Employee v. independent contractor

The legal ramifications of classifying employment: Employee v. independent contractor The legal ramifications of classifying employment: Employee v. independent contractor ABSTRACT Ronald R. Rubenfield Robert Morris University In an attempt to properly assess taxes and collect penalties

More information

Employee vs. Independent Contractor: The Importance of Proper Classification

Employee vs. Independent Contractor: The Importance of Proper Classification Employee vs. Independent Contractor: The Importance of Proper Classification Dominic L. Daher, MAcc, JD, LLM in Taxation Director of Internal Audit and Tax Compliance, University of San Francisco Dawn

More information

TAX CONSIDERATIONS BUSINESSES. Marty Verdick

TAX CONSIDERATIONS BUSINESSES. Marty Verdick TAX CONSIDERATIONS FOR SMALL BUSINESSES Marty Verdick RSM McGladrey, Inc. Overview of Topics General federal tax issues Federal tax incentives Entity selection tax issues State tax issues Sales & use tax

More information

CARVER COUNTY INDEPENDENT CONTRACTOR/PROFESSIONAL SERVICE AGREEMENT

CARVER COUNTY INDEPENDENT CONTRACTOR/PROFESSIONAL SERVICE AGREEMENT CARVER COUNTY INDEPENDENT CONTRACTOR/PROFESSIONAL SERVICE AGREEMENT This Agreement is entered into by and between the County of Carver, 600 East 4 th Street, Chaska, Minnesota 55318, through (Division),

More information

COURIERS: INDEPENDENT CONTRACTORS OR EMPLOYEES? A STATE-BY-STATE SURVEY OF UNEMPLOYMENT COMPENSATION LAWS

COURIERS: INDEPENDENT CONTRACTORS OR EMPLOYEES? A STATE-BY-STATE SURVEY OF UNEMPLOYMENT COMPENSATION LAWS COURIERS: INDEPENDENT CONTRACTORS OR EMPLOYEES? A STATE-BY-STATE SURVEY OF UNEMPLOYMENT COMPENSATION LAWS Charles M. Watkins Webster, Chamberlain & Bean Washington, D.C. Introduction The purpose of this

More information

XX... 2 TEXAS WORKFORCE COMMISSION... 2 CHAPTER 821. TEXAS PAYDAY RULES... 3

XX... 2 TEXAS WORKFORCE COMMISSION... 2 CHAPTER 821. TEXAS PAYDAY RULES... 3 XX.... 2 TEXAS WORKFORCE COMMISSION... 2 CHAPTER 821. TEXAS PAYDAY RULES... 3 SUBCHAPTER A. GENERAL PROVISIONS... 3 821.1. Title and Purpose.... 3 821.2. Definitions.... 3 821.3. Jurisdiction.... 3 821.4.

More information

TEXAS ASSOCIATION OF REALTORS INDEPENDENT CONTRACTOR AGREEMENT FOR SALES ASSOCIATE. Robyn Jones Homes, LLC

TEXAS ASSOCIATION OF REALTORS INDEPENDENT CONTRACTOR AGREEMENT FOR SALES ASSOCIATE. Robyn Jones Homes, LLC 1 TEXAS ASSOCIATION OF REALTORS INDEPENDENT CONTRACTOR AGREEMENT FOR SALES ASSOCIATE USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS IS NOT AUTHORIZED Texas Association

More information

AGREEMENT BETWEEN THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT SAN ANTONIO and PROJECT ARCHITECT for A PROJECT OF LIMITED SIZE OR SCOPE

AGREEMENT BETWEEN THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT SAN ANTONIO and PROJECT ARCHITECT for A PROJECT OF LIMITED SIZE OR SCOPE AGREEMENT BETWEEN THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT SAN ANTONIO and PROJECT ARCHITECT for A PROJECT OF LIMITED SIZE OR SCOPE This Agreement is made as of, 20 (the Effective Date ), by and

More information

CHAPTER 08 - BOARD OF CERTIFIED PUBLIC ACCOUNTANT EXAMINERS SUBCHAPTER 08A - DEPARTMENTAL RULES SECTION.0100 - ORGANIZATIONAL RULES

CHAPTER 08 - BOARD OF CERTIFIED PUBLIC ACCOUNTANT EXAMINERS SUBCHAPTER 08A - DEPARTMENTAL RULES SECTION.0100 - ORGANIZATIONAL RULES CHAPTER 08 - BOARD OF CERTIFIED PUBLIC ACCOUNTANT EXAMINERS SUBCHAPTER 08A - DEPARTMENTAL RULES SECTION.0100 - ORGANIZATIONAL RULES 21 NCAC 08A.0101 FORMAL NAME The formal name for the agency is the State

More information

Independent Contractors v. Employees

Independent Contractors v. Employees Independent Contractors v. Employees A Practical Guide for Parents Who Hire Household Help Diana Maier Attorney-At-Law 1 AGENDA Why do I need to know the difference between an independent contractor and

More information

Chapter 15 PAYROLL 15-1

Chapter 15 PAYROLL 15-1 Chapter 15 PAYROLL Payroll responsibility varies from municipality to municipality. In smaller municipalities the Clerk- Treasurer is responsible for payroll preparation and maintenance of records. In

More information

BLOOMFIELD COLLEGE. Policy on Independent Contractors; Honorariums; and Prizes, Awards, Gifts & Scholarships

BLOOMFIELD COLLEGE. Policy on Independent Contractors; Honorariums; and Prizes, Awards, Gifts & Scholarships BLOOMFIELD COLLEGE Policy on Independent Contractors; Honorariums; and Prizes, Awards, Gifts & Scholarships Administration & Finance 7/1/2013 Table of Contents INDEPENDENT CONTRACTOR POLICY... 2 Background...

More information

Pay Per Click Services Agreement

Pay Per Click Services Agreement Pay Per Click Services Agreement Pay per click service agreement made on the (date), between (Name of Client), a corporation organized and existing under the laws of the state of, with its principal office

More information

Mastering Payroll Compliance THE TOP 10 MISTAKES THAT COST EMPLOYERS MONEY

Mastering Payroll Compliance THE TOP 10 MISTAKES THAT COST EMPLOYERS MONEY Mastering Payroll Compliance THE TOP 10 MISTAKES THAT COST EMPLOYERS MONEY EXECUTIVE SUMMARY Businesses pay government agencies millions of dollars each year in compliance penalties. And in this economy,

More information

Preventing and Managing Independent Contractor Risks

Preventing and Managing Independent Contractor Risks Preventing and Managing Independent Contractor Risks Innovative Tax and Employment Law Strategies to Address Increasing Government and Private Enforcement Threats Charles Hurley (202) 263 3260 Andrew Rosenman

More information

An Overview of Tax Filing Requirements for Real Estate Broker/Agents

An Overview of Tax Filing Requirements for Real Estate Broker/Agents An Overview of Tax Filing Requirements for Real Estate Broker/Agents A two-partner, 25 person firm with 80 years history servicing clients in the areas of: real estate, auditing, accounting, tax, valuation

More information

4. EMPLOYMENT LAW. LET S GO LEGAL: The Right Road to Compliance & Protection KNOW KNOW MORE. 1. Minimum Wage & Overtime

4. EMPLOYMENT LAW. LET S GO LEGAL: The Right Road to Compliance & Protection KNOW KNOW MORE. 1. Minimum Wage & Overtime 4. EMPLOYMENT LAW KNOW There are five key areas of Employment Law for nonprofit to be aware of: 1. Minimum Wage & Overtime: Federal, State, and in some cases Local law regulates employers pay practices

More information

Purchasing Cards and IRS Requirements. A Look at the Issues

Purchasing Cards and IRS Requirements. A Look at the Issues Purchasing Cards and IRS Requirements A Look at the Issues Executive Summary Businesses that use purchasing cards must meet certain Internal Revenue Service (IRS) information reporting, withholding, and

More information

1 Exam Prep IRS Circular E Tax Guide Questions and Answers

1 Exam Prep IRS Circular E Tax Guide Questions and Answers 1 Exam Prep IRS Circular E Tax Guide Questions and Answers Part 1 1. You should calculate federal unemployment taxes for deposit purposes. A. Annually B. Quarterly C. Monthly D. Biannually 2. Which of

More information