Q&A - Employee or independent contractor?

Question:

Ken:

I am hiring a sales person and he wants to be an independent "contractor".

I need to have a contract with him so that I am protected.

Howard

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ANSWER:

    I have a comprehensive article you can read at http://www.kirschenbaumesq.com/earticle161.htm

    If you agree to hire what is really an employee as an independent contractor you run several risks.  These include licensing issues, workers comp, other insurance issues, withholding taxes and other taxes.

    If you independent contractor works just for you, has to report in and out with you, has work schedule set by you, has work performance set by you, is not separately incorporated, has no employees - then your independent contractor may be your employee, entitled to all employee rights.

    While you may save some money characterizing an employee as an independent contractor, it's probably not worth the risk, unless of course there is real indepence.

    All of your employees should be party to an employment contract.  Get one at www.alarmcontracts.com