QUESTION
I need to determine if my contractors are employees or 1099
Asked on Mar 13th, 2016 on Business Law - Tennessee
More details to this question:
I run a small business and have contractors that work from their own home around the country. We provide an answering service for our clients (SMBs). The agents that work from home are assigned multiple clients and require their phone calls to be answered during their business hours M-F. Agents have access to support and supervisor is monitoring for QA. Client tells agent which shifts are available M-F and Agent has option to agree or not. We have an agreement that outlines agent responsibilities for term of contract. There is also a set rate that is paid hourly. Both agent and client like the arrangement but client wants to make sure we are within the 1099 guidelines before expanding the contractor base.
1 ANSWER
Without knowing the exact nature of the business that you are referring to, I can only generalize that these are the factors that the courts look at in determining an independent contractor v. employee: the right to control the conduct of the work, the right of termination, the method of payment, the freedom to select and hire helpers, the furnishing of tools and equipment, the self-scheduling of working hours and the freedom to offer services to other entities. You indicate that you have agreement what outlines agents responsibilities for the term of contract. The primary question is to what degree is there control exercised over the agent by either your business or your client. You should consult with an atttorney in your area or consult with the Tennessee Department of Labor for more specific opinions.
Answered on Mar 13th, 2016 at 6:47 AM