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Irwin Law
Irwin Law, Attorney
Category: Business Law
Satisfied Customers: 6769
Experience:  30+ yrs. representing small business, real estate, probate
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Company A hires Company to deliver their product. Company

Customer Question

Company A hires Company B to deliver their product. Company B then hires Company C as an independent contractor to deliver Company A's product. Company B gives (no charge) uniforms to Company C to wear with Company B's name on them and pays Company C $6.00 per month for wearing their shirt and calling it advertising for Company B. Would IRS regulations consider this matter an employer - employee relationship or an independent contractor situation?
John Fink
Submitted: 1 month ago.
Category: Business Law
Expert:  Irwin Law replied 1 month ago.

Good morning John: Thanks for using JUST ANSWER. The IRS would look at the total agreement between companies B and C to determine independent contractor status. There are many factors that go into the determination of independent contractor status. It hinges upon the total degree of control which B exercises over the employees of C. The uniform aspect is only one factor, in the total picture of control. I doubt that it would be deemed sufficient to make C employees of B. I hope this answers your question.

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