RE: taking on a subcontractor

["Stephen Arrants" <steve -at- microbrightfield -dot- com>]

Michele Davis writes:
> Sounds like things suck much in Cali. I own an S-Corp. but do 
> not provide liability insurance, ever. Every customer I have 
> knows I don't provide it and that doesn't mean that I am 
> perceived as an employee of their company. I am confused, is 
> there some Cali. or national law that states someone is not 
> considered a subcontractor is they don't provide liability insurance?

>From my dealings with the California EDD, being paid on a 1099 basis
automatically disqualifies you for Unemployment Insurance coverage. If
you work on a 1099-basis, you cannot use that job as a qualifying
employer for collecting unemployment insurance. (Though, if you were
paid W2 prior to contracting on 1099-basis, you could use your prior
employment to qualify.)




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