Unemployment Claim Filed Against Ind. Agent From Temp Worker

[Josh]

yes. she will get a 1099 in January.

I'm not sure what your response to the unemployment folks was, but if she was an independent contractor that usually kills the unemployment claim.

This might very well have just been something unintentional. Like it or not, that's part of the risk involved of hiring folks. Without knowing more she sounds like she just didn't know any better.

 

[Thad.Sipple]

I'm sure you're backing that up with something, but it's not that cut and dried. By that definition most of these large shops and recruiting mills wouldn't be getting away with 1099ing these folks vs having to w2 them all. From the IRS website: Independent Contractor (Self-Employed) or Employee? In a lot of ways them being a 1099 is not only easier for tax/benefit reasons, but it's also just flat out easier. If they're working from their own space, setting their own hours, using their own equipment, and receive little to no direction, that's solidly 1099 territory. If they have a set schedule, use your office space, use your equipment, and you give them vacation time, w2 territory.

Federal and state are different. Federal is more lax than state. If there are 10 rules to define an employee and you do 9 out of 10 perfectly , then bam employee.

I'm talking from experience.

 

[walthamny]

Based on the facts here, she would be considered a w2 employee. What the IRS says and the case law is very different. The case law will say you told her when the assignment will probably end, that means you are exercising control, and she is an employee of yours. She will collect the unemployment insurance claim easily. I hope you don't have a 401K or SEP IRA, because it can open up a can of worms.

 

[Thad.Sipple]

We don't even want to bring up workers comp. they have as much power as ABC does. They can shut you down.

 

[walthamny]

Workers Comp is not required in Texas. One of those states that does not have this requirement.

 

[DFW]

The base period in most states is one year. She worked 2.5 months. We will see. Its really no big deal. I was posting just to provoke thought and make other agents aware. I had no idea that people would wildly stray from the facts and suggest if this and if that. If my aunt had balls she would be my uncle. Holy cow.

 

[Thad.Sipple]

Workers Comp is not required in Texas. One of those states that does not have this requirement.

Sweet........ California is terrible for business.

 

[Josh]

Based on the facts here, she would be considered a w2 employee. What the IRS says and the case law is very different. The case law will say you told her when the assignment will probably end, that means you are exercising control, and she is an employee of yours. She will collect the unemployment insurance claim easily. I hope you don't have a 401K or SEP IRA, because it can open up a can of worms.

I take it you're an attorney or something?

Contracts end all the time, that's a part of why folks use an independent contractor.

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California is terrible

Fixed that for you

 

[Thad.Sipple]

The base period in most states is one year. She worked 2.5 months. We will see. Its really no big deal. I was posting just to provoke thought and make other agents aware. I had no idea that people would wildly stray from the facts and suggest if this and if that. If my aunt had balls she would be my uncle. Holy cow. If she filled out insurance apps...If you have a 401k... come on man!

Yep I had a no big deal also, till it triggered an EDD audit.

 

[LGilmore]

I along with Thad... been there done that, paid that and learned from that. Mine was about 25 years ago. Calling someone an independent contractor does not necessarily make them so. State level government is much worse than the Feds on small transgressions. They make the Feds look like 1st graders. At least in my state.

It was better to just write the check and learn than fight too hard. It cost me less to do that than fight it. Similar short time service. When you're talking hundreds instead of thousands, figure out if the battle is worth it.

But again, that is on you. Please no more personal messages either. I did not ask or demand you alter your posts at all. Say what you want, just be prepared to have your comments make sense.

As I said in my reply, I think your problem is with your state, not the feds. So blame your governor as it would make more sense.