We went thru this with the state for one of the guys we hired to do work for us "on the side". Just as Lee says, for us there was no "ah hah" answer, but I guess enough correct answers to the multitude of questions fired at us. The state agreed he was a contractor only because he kept sufficient control over much of the job, that he did for us.
In the UK the HMRC is about to change how it treats "not independent contractor"s, they're calling it IR35. Employer (client) has to pay tax for the 'not contractor'. If the 'not contractor' has more than one client, then it's far easier to call them a contractor. You can call the 'not contractor' an outside IR35 contractor, then there are the tax breaks and the client ('not employer') doesn't have to worry about the contractor's taxes and holidays etc.
Thanks Lee - been a big fan of your channel for years. Just wondering if you might do a video sometime contrasting independent contractors, employees and “working on secondment.” As a self-employed person representing a one-man company, I’ve been able to “second” myself out to clients over the years - but always ignorant of the exact differences to the alternatives of independent contractor and full-time employee.
The IRS and DOL (Department of Labor) are different branches of the government. They both have very sharp teeth and can put you in jail. They will often team up to take somebody down.
Mr Phillips, If my messenger service has a w2 form to take out taxes, am I a independent Contractor paying for my gas in my automobile, tolls and tires. I would appreciate your comments on my status. ( I do not get paid for sitting around.) I would appreciate your comments or opinion on my concern. Thank you, Larry
@@Legaleescorp once I completed the delivery of items for this customer on the order, I will get payed, but when I need to drive back from the suburbs without a order, I will have to paid out of pocket of gas and tolls where I came from. Thank you, Larry
Question, a w-4 1099 1040 and i-9 i read the tax codes pertaining to these forms my interpretation is these forms only pertain to person deriving incone from a foreign source. So when you sign these forms under penalties of perjury you swearing you derive your incone from a foreign source not domestic
On January 1, 2019, a lot of Employers ( jobs ) fired their subcontractors and made 'some' loyal workers into FULL "employees" ,.. THIS Was a mistake by them,.. #Uber and #Lyft are doing this exact same thing too ,..on a broader scale ,.. Employers may not know it ,.. but they can be badly sued for doing this, risking liens ,..and even worse Ca Tax liens and from bureaus of the likes of the EDD DEPT OF unemployment Calif , Consumer right's Attys, etc,.. many will come at their former employers with lawsuits using things like "Age discrimination" and they may win too !! because liberal judges will ask; "well,..why then did you fire the guy ??" LOL
I assume that if the workers were doing full time work for the “employer” they weren’t really independent contractors. If the employer could hire them as full time employees, they must not have qualified as independent contractors anyway. It sounds like you are in California. Get out while you can.
On January 1, 2019, a lot of Employers ( jobs ) fired their subcontractors and made 'some' loyal workers into FULL "employees" ,.. THIS Was a mistake by them,.. #Uber and #Lyft are doing this exact same thing too ,..on a broader scale ,.. Employers may not know it ,.. but they can be badly sued for doing this, risking liens ,..and even worse Ca Tax liens and from bureaus of the likes of the EDD DEPT OF unemployment Calif , Consumer right's Attys, etc,.. many will come at their former employers with lawsuits using things like "Age discrimination" and they may win too !! because liberal judges will ask; "well,..why then did you fire the guy ??" LOL
*OMEGALUL* I love that intro *ya im an attorney don't hold it against me*
We went thru this with the state for one of the guys we hired to do work for us "on the side". Just as Lee says, for us there was no "ah hah" answer, but I guess enough correct answers to the multitude of questions fired at us. The state agreed he was a contractor only because he kept sufficient control over much of the job, that he did for us.
Can you make a video on non compete in California please??
In the UK the HMRC is about to change how it treats "not independent contractor"s, they're calling it IR35.
Employer (client) has to pay tax for the 'not contractor'.
If the 'not contractor' has more than one client, then it's far easier to call them a contractor.
You can call the 'not contractor' an outside IR35 contractor, then there are the tax breaks and the client ('not employer') doesn't have to worry about the contractor's taxes and holidays etc.
Thanks Lee - been a big fan of your channel for years. Just wondering if you might do a video sometime contrasting independent contractors, employees and “working on secondment.” As a self-employed person representing a one-man company, I’ve been able to “second” myself out to clients over the years - but always ignorant of the exact differences to the alternatives of independent contractor and full-time employee.
Another valuable piece of information, 🙏
Sir, you are amazing and clear to explain. God bless you!
Thank you
Is there a difference between an audit by the IRS compared to an audit by the DOL?
The IRS and DOL (Department of Labor) are different branches of the government. They both have very sharp teeth and can put you in jail. They will often team up to take somebody down.
Thank you for these great videos.
Thank you!
Mr Phillips, If my messenger service has a w2 form to take out taxes, am I a independent Contractor paying for my gas in my automobile, tolls and tires. I would appreciate your comments on my status. ( I do not get paid for sitting around.) I would appreciate your comments or opinion on my concern. Thank you, Larry
If you only get a w2, technically you can’t take expenses. They should be paying for the car expenses in a reimbursement to you.
@@Legaleescorp once I completed the delivery of items for this customer on the order, I will get payed, but when I need to drive back from the suburbs without a order, I will have to paid out of pocket of gas and tolls where I came from. Thank you, Larry
Question, a w-4 1099 1040 and i-9 i read the tax codes pertaining to these forms my interpretation is these forms only pertain to person deriving incone from a foreign source. So when you sign these forms under penalties of perjury you swearing you derive your incone from a foreign source not domestic
You read the tax code? That's sick. (I am too...) I think the IRS thinks that if you get money from a domestic source, you owe taxes.
What if subcontractor works for Home Depot as window installer, and he doesn’t work for anyone else. Is that mean he is Home Depot employee? Thanks.
The state would probably classify him as a Home Depot employee.
Outstanding job!
Just like a traffic stop, you don't have to explain anything.
Hello,
If I work for more than one companies (direct competitors) as an independent contractor, then am I breaking any agreements?
It all depends upon what agreements you have with the companies you work for. There is no standard for that the companies can contract you for.
On January 1, 2019, a lot of Employers ( jobs ) fired their subcontractors and made 'some' loyal workers into FULL "employees" ,.. THIS Was a mistake by them,.. #Uber and #Lyft are doing this exact same thing too ,..on a broader scale ,.. Employers may not know it ,.. but they can be badly sued for doing this, risking liens ,..and even worse Ca Tax liens and from bureaus of the likes of the EDD DEPT OF unemployment Calif , Consumer right's Attys, etc,.. many will come at their former employers with lawsuits using things like "Age discrimination" and they may win too !! because liberal judges will ask; "well,..why then did you fire the guy ??" LOL
I assume that if the workers were doing full time work for the “employer” they weren’t really independent contractors. If the employer could hire them as full time employees, they must not have qualified as independent contractors anyway. It sounds like you are in California. Get out while you can.
mwuahahaha >:) thank you.for the onfo mwuahahahah
Patricia Jones
Just like a traffic stop, you don't have to explain anything.
On January 1, 2019, a lot of Employers ( jobs ) fired their subcontractors and made 'some' loyal workers into FULL "employees" ,.. THIS Was a mistake by them,.. #Uber and #Lyft are doing this exact same thing too ,..on a broader scale ,.. Employers may not know it ,.. but they can be badly sued for doing this, risking liens ,..and even worse Ca Tax liens and from bureaus of the likes of the EDD DEPT OF unemployment Calif , Consumer right's Attys, etc,.. many will come at their former employers with lawsuits using things like "Age discrimination" and they may win too !! because liberal judges will ask; "well,..why then did you fire the guy ??" LOL