Earlier quoted context omitted.
Also not an accountant or lawyer, but I think that if you're paying someone by the hour, and directing them as to how they should do they job, they need to be classified as an employee, not a contractor. This means a W2 instead of a 1099, plus you need to pay them on a fixed schedule, pay social security and medicare taxes (and likely other taxes depending on jurisdiction) on their wages, deduct income taxes, do an I…
See: https://www.irs.gov/publications/p15a#en_US_2019_publink1000... >To determine whether an individual is an employee or an independent contractor under the common-law, the relationship of the worker and the business must be examined. In any employee-independent contractor determination, all information that provides evidence of the degree of control and the degree of independence must be considered. >Facts that pr…
But it's too bad that so many of those points are ambiguous due to lack of information.
For example, the "Computer Industry" example (CTRL + F for it). It's pretty clear cut that a huge amount of software freelance work falls under this example.
But then this sentence ruins everything: "Steve works at home and isn't expected or allowed to attend meetings of the software development group".
What if you have to goto 1 or more meetings to get a clarification on the specifications because part of what you're developing is related to 3 other people who are employees of that company.
It seems ridiculous to me that if you sit in on a 30 minute remote meeting, suddenly you're a W2 employee instead of a contract worker. Likewise it's ridiculous if you happen to go on site once or twice for whatever reasons. The examples are also left up in the air. If a single condition fails, is it an automatic W2 employee, or are you still able to be a 1099 employee and it just so happens the example didn't go into enough detail.
Then it's like, well, if you try to follow the rules but the rules aren't clear then how are you supposed to follow them. Surely you can't get in trouble (read: pay fines) due to the rules being incomplete?