Legal Question in Business Law in New York

Read the IRS's publication that define employees vs. independent contractors VERY CAREFULLY; you'll find that definition in IRS Publication 15-A, which you can read online and download from http://www.irs.gov/pub/irs-pdf/p15a.pdf . This document tells you exactly what does and does not constitute an "employee" and what does and does not constitute an "independent contractor." Contact your tax advisor and/or your HR professional (join your Chamber of Commerce; you'll find CPAs and HR professionals by the dozens there) with any and all questions. The money you pay to these professionals for their advice is (a) WAY less than you would spend to defend against the IRS; and (b) may be deductible as an ordinary business expense.

Don't play games with this; the IRS will come after you big time and charge you massive fines for miscategorizing someone as an "independent contractor" when they actually meet the definition of "employee." Ask LOTS of questions of your tax and HR professionals as you set up your business to accommodate "independent contractors" and not "employees."

THIS POST CONTAINS GENERAL INFORMATION AND IS INTENDED FOR ENTERTAINMENT PURPOSES ONLY. IT DOES NOT CONSTITUTE LEGAL ADVICE, NOR DOES IT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP. FOR LEGAL ADVICE ON YOUR PARTICULAR MATTER, CONSULT YOUR ATTORNEY.

The key to keeping these people in Independent Contractor vs Employee is this: an independent contractor is given a task, and he chooses how to fulfill the task. An employee is one who is told what to do, under the control and at the direction of the employer. You will need to have written contracts with your independent contractors, and this is something I handle routinely. Feel free to contact me through the email link or by calling 516-242-1453.