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Re: taking on a subcontractor

Subject: Re: taking on a subcontractor
From: "Mike O." <obie1121 -at- yahoo -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Fri, 14 May 2004 10:01:36 -0400


Mailing List wrote:

Bill Darnall pronounced:

For example, several years ago I hired someone who claimed to be
working as an independent subcontractor. We negotiated a reasonable
subcontract. I fully paid the person for their work. Later, this
person filed for unemployment. The California EDD ruled she was not
really a (legal) independent subcontractor. I was forced to pay, out
of my pocket, all her state and federal taxes, (double) social
security, plus, plus, plus.

Well, don't leave THAT hanging, my man. C'mon, out with it.

How did this person turn into an employee of yours?
Was she required to work at your location, using your tools (computers, software, etc.)? Did you set her hours and make other employer-like demands? Were there other "markers" of employee-dom versus contractorhood that the goobermint said this person (or the terms of her contract) exhibited?

Bigger companies engage indie contractors all the time and get away with controlling their hours and location. Most of the time this is by mutual agreement and is a win-win, as long as both parties are happy to look the other way on the finer points of employee classification.

Maybe Bill didn't donate enough money to the right politicians.

Mike O.


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