Legal Question in Business Law in New York

Categorizing workers as independent contractpors is based on a number of factors. According to the IRS the general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. There are other qualification as well.

Many companies get in trouble because they fail to categorize their employees correctly. New York State and the Federal government are very proactive in prosecuting and fining such companies. You are highly urged to consult an attorney admitted to practice in New York before making such a decision.

Feel free to contact my office at your earliest convenience.

Roman R. Fichman, Esq.

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Disclaimer: This posting has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice. You should always consult an attorney admitted to practice in your jurisdiction for specific advice.

IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any matters addressed herein.

As a Franchise Attorney I can say the other attorney is right on point. Disguised employee cases (calling them independent contractors) are rampant. The IRS and state agencies are vigilant and have put companies out of business collecting back employment taxes and penalties. They also pursue the individuals behind these companies. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation