Working With Independent Contractors - Book With CD-ROM

By Attorney Stephen Fishman, Nolo Press

Venue:

National - All States

Description:

If your business hires independent contractors, freelancers or consultants, this book is for you -- and essential.

Working with independent contractors can save you a bundle -- but the rules regarding who qualifies are complicated, and misclassifying a worker can result in serious financial penalties from your state or IRS.

If you hire programmers, writers, designers, marketing consultants, nurses, janitors, telemarketers, drivers -- in a word, anyone -- on a contractual basis, you need Working With Independent Contractors.  This book shows you how to:

• create a valid contract
• assess who qualifies as an independent contractor
• hire ICs without risking an audit
• retain ownership of intellectual property when using ICs
• handle an IRS audit
• take advantage of the IRS's "Safe Harbor" law

Table of Contents

1. Why You Need This Book

• What Are Independent Contractors?
• Why Hire Independent Contractors?
• Who Decides Whether a Worker Is an Independent Contractor?
• Questions to Answer Before Hiring Any Worker

2. Benefits and Risks of Working With Independent Contractors

• Benefits of Using Independent Contractors
• Risks of Using Independent Contractors

3. The Common Law Test

• When a Legal Test is Necessary
• The Right of Control Is Key
• Factors for Measuring Control

4. How the IRS Classifies Workers

• Four Steps to Classification Under the IRS Rules
• Step One: Check Statutory Independent Contractor Rules
• Step Two: Analyze the Worker Under the Common Law Test
• Step Three: Check Statutory Employee Rules
• Step Four: Check the Safe Harbor Rules

5. IRS Audits

• Why Audits Occur
• Audit Basics
• The Classification Settlement Program
• IRS Assessments for Worker Misclassification
• Penalties for Worker Misclassification
• Interest Assessments
• Criminal Sanctions
• Retirement Plan Audits
• Worker Lawsuits for Pensions and Other Benefits

6. State Payroll Taxes

• State Unemployment Compensation
• State UC Classification Tests
• State Unemployment Tax Agencies
• State Disability Insurance
• State Income Taxes

7. Workers' Compensation

• Basics of the Workers' Compensation System
• Who Must Be Covered
• Exclusions From Coverage
• Classifying Workers for Workers' Compensation Purposes
• If Your Workers Are ICs
• Obtaining Coverage
• State Workers' Compensation Offices

8. Hiring Household Workers and Family Members

• A. Household Workers
• Family Members as Workers

9. Labor and Antidiscrimination Laws

• Federal Wage and Hour Laws
• Federal Labor Relations Laws
• Family and Medical Leave Act
• Antidiscrimination Laws
• Worker Safety Laws
• Immigration Laws
• State Labor Departments

10. Intellectual Property Ownership

• What Is Intellectual Property?
• Laws Protecting Intellectual Property
• Copyright Ownership
• Trade Secret and Patent Ownership

11. Strategies for Avoiding Trouble

• Hiring Incorporated Independent Contractors
• Employee Leasing

12. Procedures for Working With Independent Contractors

• Before Hiring an IC
• While the IC Works for You
• After the IC's Services End

13. Independent Contractor Agreements

• Using Written Agreements
• Drafting Agreements
• Essential Provisions
• Optional Provisions
• Sample IC Agreement
• Agreements for Specialized ICs

14. Help Beyond This Book

• Finding and Using a Lawyer
• Help From Other Experts
• Doing Your Own Legal Research

Appendix 1: How to Use the CD-ROM

• Installing the Form Files Onto Your Computer
• Using the Word Processing Files to Create Documents
• Files Provided on the Forms CD-ROM

Appendix 2: Contractor's Screening Documents

• Independent Contractor Questionnaire
• Documentation Checklist
  Worker Classification Checklist

Appendix3: Sample Agreements

• Introduction to Sample Agreements
• Independent Contractor Agreement
• Independent Contractor Agreement for Household Workers
• Independent Contractor Agreement for Direct Sellers
• Independent Contractor Agreement for Real Estate Salespeople
• Independent Contractor Agreement for Consultants
• Independent Contractor Agreement for Work Made for Hire

Index