My "answers would seem to be incorrect based on this statute"? Really?
I'm sorry----I thought that we were talking about an independent contractor versus a W-2 employee. Please show me in this citation where it says that federal law concerning who qualifies as independent is abrogated by this state statute? It doesn't. Federal law controls whether you may be classified as an independent contractor---not state law. The fact that state law allows you to work DOES NOT MEAN that you can qualify as an independent contractor.
Of course you can work under another licensed contractor----BUT THEY MUST SUPERVISE YOU, and they are responsible for your work. That makes you a W-2 employee----under federal law.
Reading state code is insufficient in a case where federal law trumps state law----and that is what I am providing you----answers based on both state and federal law.
FEDERAL LAW: A W-2 Employee must be provided workers' compensation coverage, unemployment insurance and you must withhold taxes from their wages. A W-2 employee is an employee that you control,directing their work, the hours that they work and the ultimate quality of their work.
A 1099 employee you don't have to provide workers' compensation coverage or unemployment insurance for, you don’t withhold taxes and you have little control over their work. They are treated as an outside company that you are contracting with to do a project---on their own time and using their own judgment.
There is typically not a choice in how you designate an employee, but rather the designation is controlled by law.
A worker is more likely an Employee, than an Independent Contractor, if the worker:
1. Is required to comply with the employer’s instructions about the work.
2. Receives training from the employer.
3. Provides services that are integrated into the business.
4. Provides services that must be rendered personally.
5. Hires, supervises and pays assistants for the employer.
6. Has a continuing relationship with the employer.
7. Follows set hours of work.
8. Works full-time for the employer.
9. Works on the employer’s premises.
10. Does the work in a sequence set by the employer.
11. Submits regular reports to the employer.
12. Receives payments of regular amounts at set intervals.
13. Receives payments for business or traveling expenses.
14. Relies on the employer to furnish tools and materials.
15. Lacks a major investment in facilities used to perform the service.
16. Cannot make a profit or suffer a loss from the services.
17. Works for one employer at a time.
18. Does not offer services to the general public.
19. Can be fired.
20. Can quit at any time without liability.
The IRS looks at 3 primary issues when evaluating whether you are employee or independent:
1. The behavioral control issue: How the employer directs your services provided, and whether the employer has retained the right to control the details of your work. The fact that state code requires your employer to control the details of your work means that you cannot be independent under federal law.
2. The financial control issue: The IRS looks at whether you can to make a profit from your business---not simply an hourly wage---and whether you can make a profit or take a loss in your business.
3. The nature of the business relationship between the two of you: Is this a strict dealing between the hospital and you-as-a-separate-company. If the employer provided benefits such as vacation, health benefits---normally only give an employee, and whether your services are simply the regular business of the business owner.