QUESTION
Can we legally classify the telemarketers we want to hire as independent contractors?
Asked on Feb 24th, 2014 on Labor and Employment - Idaho
More details to this question:
We have a short term need for telemarketers, 8 weeks. If we were to have them rent their cubicle space from us, we did not dictate their work hours, and we paid them based on performance, could we legally classify them as independent contractors?
2 ANSWERS
This likely is not legal. You may apply to IRS for advance permission to do this. If you are wrong, and proceed, the penalties are substantial. You should also look at the unemployment taxes. You likely are liable for UI taxes, and they would be eligible for benefits when the job ends. The fact that you hired them as temp workers, for a limited duration, is of no consequences in UI world. They are unemployed due to lack of work, and therefore eligible. If you do not pay UI taxes, you likely will be busted when they apply for UI.
Answered on Feb 27th, 2014 at 3:49 AM
Commercial Contracts Attorney serving Boise, ID
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Probably not. Your better bet is to go to a temp agency and have them hire the people. Sure, it may be a little more costly, but it will save you a lot if just one of them figures out he or she is an employee and gets the IRS and the states department of labor involved.
Answered on Feb 27th, 2014 at 3:47 AM