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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29573
Experience:  Taxes, Immigration, Labor Relations
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My name is ***** *****. What is a person was red to do

Customer Question

Customer: My name is ***** *****. What is a person was hired to do several different jobs at different times, none making more than 1900 per service. For instance, she was my personal assistant. She was a driver for a time for my son. She was a housekeeper. She was a pet care giver. None of these individually paid more than $1900 each. However, it was all to one person. Do I need to treat her as an employee?
JA: Thanks. Can you give me any more details about your issue?
Customer: She worked as a driver, these are at random times, making about 1200 for the year. She worked as a cat sitter, random times, making about 900 per year. She worked as a personal assistant to me, random times, making about 1500 per year. She worked as a babysitter, at times, making about 1600 per year. She did some housekeeping, over the course of a couple of months, making about $1200 for the year. She also did some basic tutoring for the last semester with my son making about $1100. In total she made less than $8000. But this was all to one person. Is she an employee or an independent contractor?
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Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

That makes NO difference what exactly services are provided for determination of the employee classification.
It also doesn't matter what is the compensation....

What does matter - Facts that provide evidence of the degree of control and independence.

These facts fall into three categories:

1.Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

2.Financial: Are the business aspects of the worker s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

3.Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

You must weigh all these factors when determining whether a worker is an employee or independent contractor.

Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor.

There is no magic or set number of factors that makes the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.

Customer: replied 1 year ago.
I'm still confused. So it's up to me at this point as to whether she is an employee ?
Expert:  Lev replied 1 year ago.

You are correct that you have to make determination - and that determination must be based on evidence of the degree of control and independence as outlined above.

But that doesn't mean others have to agree with your determination and woudl not be able to challenge you...

It is possible that an employee files a complain when he/she learns that there is no unemployment compensation upon termination or there are additional self-employment tax liability....

On the other hand - the IRS might disagree with your determination and request additional employment taxes.

of the Labor Department in your state which handles unemployment compensation might assessed additional unemployment taxes.

You definitely may defend your position in case of ANY disagreements - and in this case the Court will issue the final determination.

Expert:  Lev replied 1 year ago.

If, after reviewing the three categories of evidence, it is still unclear whether the person is an employee or an independent contractor, Form SS8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding -

- can be filed with the IRS.

The form may be filed by either the business or the worker.

The IRS will review the facts and circumstances and will officially determine the worker s status.

Be aware that it can take at least six months to get a determination.

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