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Old 03-29-2012, 09:01 AM  
Sunny Day
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Independent Contractors

1st off contact a CPA, not a lawyer. Most lawyers know nothing of taxes. A lot depends on the nature of the business. Most topless bars only will hire independent contractors.

The Govt usually cares less as
1 Either way the employee/contractor will have to pay all their income taxes, although independent contractors can deduct some expenses, but an employee would be reimbursed and the employer would deduct the expenses.
2 Either way the Govt will still get the Social Security tax. Independent contractor pays all or a 50/50 split between employee & employer.
3 Actually Govt comes out ahead on Workers Comp & Unemployment on an independent contractor, as an employee will most likely get back more than they had withheld.

My GF works as an independent contractor for a business that has employees doing the same exact job. There is nothing illegal about it and despite what posters have said, she does not have to be incorporated, nor is it illegal to hire independent contractors.

A lot of the independent contractor rules are in the Fair Labor Standards Act. It's mostly to keep companies declaring their employees independent contractors, so they can pay straight time instead of overtime.

The basic rule is an independent contractor, can have the option to have multiple employers. A web site designer is a perfect example. If he works at home it's easy for him to be an independent contractor. If he works in your office 40 hours a week he is probably an employee. Less than 40 it's a gray area.

You can always hire through a temp agency, costs more, but many companies believe the long term costs, especially not paying employee benefits are less. Also with an agency, you call them, say the employee is no longer needed and there's no worry of a firing lawsuit.

As for drug testing, I've worked for small and huge companies in the sensitive area of accounting. Mostly as a contract employee (temp), never was I required to take a drug test where regular employees had to. Many places I had more access than the regular employees to sensitive items (money or data). I took the trust I was given seriously and never did harm to an employer. I quit one job after 2 weeks when they falsely questioned my honesty over my medical insurance. I walked out of a job interview as I had to take an honesty test by telephone, 1 for yes, 2 for no. The recorded voice sounded like a supervisor at some cotton mill on Alabama and the sneer in his voice was "if you have to work, you're scum."
Drug tests are worthless. meet the person, get a feel for them. Most of the time you can tell the honest from crooks. But I've worked at companies where a grandmother that didn't even drink ended up arrested for embezzling.

As for the interview, I've got jobs just walking in the door. I also filled at a job application for a small business that was 10 pages long. Got the feeling the owner was a paranoid control freak and was going to be a pain to work for. Glad he didn't call back.
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