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LawTalk, Attorney
Category: Employment Law
Satisfied Customers: 37855
Experience:  30+ years legal experience and I keep current in Employment Law through regular continuing education.
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I need sample letter for mfg rep stating we offer no ins,no

Resolved Question:

I need sample letter for mfg rep stating we offer no ins,no WC, no ss and do not deduct tax...THEY are responsible. ..basically a "firewall letter". THANKS
Submitted: 6 years ago.
Category: Employment Law
Expert:  LawTalk replied 6 years ago.
Good morning,

Are you suggesting that you want to hire employees and not pay FICA, unemployment and workers' compensation?

Will these employees pass the sniff test for truly independent contractors?

Customer: replied 6 years ago.
They will receive a monthly dollar amount and commission when a level of sales are reached...NO salary per se. They must provide their own insurance...independent outside contractor or manufactures rep.
Expert:  LawTalk replied 6 years ago.
Good morning,

Based on the following criteria---and be sure to lean toward employee classification, as that is what the feds will do----can you honestly state that they will TRULY be independent contractors? If you mis classify them, your company is looking at thousands in civil penalties as well as back pay, interest and possible the expense of litigating lawsuits in a couple of states.

An employee 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.


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Customer: replied 6 years ago.
They will not work solely for us...they make NO commission if sales fall below a minimum not hire assistants for not work on set hours.
Expert:  LawTalk replied 6 years ago.
Good morning,

In this case, you would not want a letter. You will need to draft an Independent Contractor Agreement---a contract---which sets out the duties to be performed, the compensation and requires that they have business licenses in the state or city that they work out of.

You will not be allowed to dictate the hours that they work, nor set the order of appointments they have if this a lead generated business. You will need to clearly state that neither party has the obligation, nor will they, collect or pay federal or state taxes on behalf of the other. Also it is generally demanded that they carry business insurance and auto insurance as well---as independent or not--there can be an argument made that they are your agent---and at least bring you into a suit as a defendant.

This is a contract that will need to be drafted by an attorney---unless you like living dangerously. If you do, then you may modify this document for your use:

I wish you the best in 2011.

Because I help people here, like you, for a living---this is not a hobby for me, and I sincerely XXXXX XXXXX abiding by the honor system as regards XXXXX XXXXX I wish you and your family the best in your respective futures.

Would you be so kind as to Accept my Answer so that I may be compensated for assisting you? Bonuses for greatly informative and helpful answers are very much appreciated. Thanks Again,