Independent contractor ...with no contract?

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Independent contractor ...with no contract?

Postby tksbussong on Sun Sep 26, 2010 6:40 pm

Does anyone know what it would be considered to be working as an independent contractor without a contract?

(other than screwed)

I'm wondering if that's fraudulent with the IRS or anything on the employers behalf.
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Re: Independent contractor ...with no contract?

Postby RelaxandRejuvenate on Mon Sep 27, 2010 2:40 am

Not impossible or necesarrily illegal, just not in your best interest
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Re: Independent contractor ...with no contract?

Postby squash_blsm on Mon Sep 27, 2010 3:40 am

In this industry there are many people who are working as "IC's" with only a verbal "contract".

It sounds as if it is too late but it is a good idea when you enter into a verbal agreement that you follow up with a written understanding and verify it with the other person, date and sign if both of you are satisfied.

If you truly were an IC, your contract can be pretty much be terminated at will anyway (verbal or written).
If you feel that you were actually an employee and were "fired" then you can take it up with your state labor board and file for unemployment. You will need to provide documentation of earnings. I get a 1099 at the end of the year but I keep a weekly log.
And for our state there is a whole list of questions to determine IC vs employee status. If answered honestly, many if not most "IC's" are actually employees. It's an area that most small employers are not too savvy about - they just do things the way that they have always done them without really checking.

I have a copy of an IC contract that I use as a guideline - I am not sure where I obtained it originally,
but if it would help I could send it to you.
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Re: Independent contractor ...with no contract?

Postby Taoist on Mon Sep 27, 2010 8:09 am

Here is a good article to help clarify the difference between independent contractor, employee, and booth-renter status:

http://www.massagetherapy.com/articles/index.php/article_id/454/Independent-Contractor-Employee-Booth-Renter%3A-Which-Piece-Am-I
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Re: Independent contractor ...with no contract?

Postby tranquilspirit2006 on Mon Sep 27, 2010 12:07 pm

I'm rather confused by that article. It states that for ICs, the place they work is not their primary workplace? Rather they have an on-call status? If that is true, I am none of the above!
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Re: Independent contractor ...with no contract?

Postby RelaxandRejuvenate on Mon Sep 27, 2010 1:16 pm

tranquilspirit2006 wrote:I'm rather confused by that article. It states that for ICs, the place they work is not their primary workplace? Rather they have an on-call status? If that is true, I am none of the above!


The problem with the IRS guidelines, is they are just that.

Even if you talk to someone at the IRS and give them a specific example, they won't tell you one way or the other to avoid having their opinion be used against them in the case of a legal proceeding.

IN the situation you mention, what is "primary"? If you only do massage part time, on call, but only for one entity, that could be interpreted as primary, since you have no other income sources. But do they really mean a place you work 4 hours a week?

Also, no single factor in the guidelines will make you an employee or IC in the eyes of the IRS. They look at each situation in its entirety. I think it's because they want to have it both ways and get the most out of a taxpayer as possible.
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Re: Independent contractor ...with no contract?

Postby Taoist on Mon Sep 27, 2010 4:15 pm

tranquilspirit2006 wrote:I'm rather confused by that article. It states that for ICs, the place they work is not their primary workplace? Rather they have an on-call status? If that is true, I am none of the above!


I'm wondering if that has to do with your business address on your business license? I have mine as my home address although I practice elsewhere.
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Re: Independent contractor ...with no contract?

Postby JasonE on Mon Sep 27, 2010 8:32 pm

tksbussong wrote:Does anyone know what it would be considered to be working as an independent contractor without a contract?

(other than screwed)

I'm wondering if that's fraudulent with the IRS or anything on the employers behalf.


Regardless of the IRS aspect, it is definitely a recipe for being screwed over and left holding a bag of regrets. It always sounds simple and idyllic until things go awry... which they pretty much always will, sooner or later.
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Re: Independent contractor ...with no contract?

Postby squash_blsm on Wed Oct 06, 2010 11:04 am

Here is a link to Cherie Sohnen-Moe's site with a pdf of a sample IC contract.
http://www.sohnen-moe.com/formfiles/ind_cont.pdf

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