2021-The Independent Contractor

Becasue it is tax time, I did some research as to the state of the IC, in the eyes of the IRS and my home state. What I found out, especially about the ABC test (see below) was interesting.

Please check this link out: [www.thebalancesmb.com]

Especially interesting is the ABC test, now used by 33 states in the U.S. Here is an excerpt from this article regarding this test:


State Laws and Regulations for Independent Contractors
Workers can be considered employees under state law even if they are not considered employees under federal law, and several states have more strict definitions for ICs.

Some states, including Florida, Iowa, and Michigan use the IRS common law test (or a variation) described above.

Other states, including California, New Jersey, and Virginia, use a more restrictive worker classification test called an ABC test.

The ABC test considers a worker to be an employee unless all of the three criteria are satisfied:

A: The worker is free from control and direction of the hiring entity

B: The worker performs work outside the entity’s usual course of business

C: The worker is customarily engaged in an independent trade, occupation, or business of the same nature as the work performed for the hiring entity9

As of October 2019, 33 states had implemented the ABC test or a slight variation of it. Check with your state’s labor department for information on its test for classifying workers.10



THE MOST STRIKING PART OF THIS EXCERPT IS A., WHICH SAYS:
"The worker is free from control and direction of the hiring entity."
I AM PRETTY SURE WE ALL FEEL WE ARE THE EXACT OPPOSITE OF THIS DESCRIPTION IN OUR RELATIONSHIPS WITH MSC'S, ESPECIALLY CONSIDERING HOW OFTEN WE ARE INSTRUCTED AS TO:
1) EXACTLY HOW TO DO OUR INTERACTIONS AND PURCHASES
AND
2)WHAT WILL RESULT IN NON-PAYMENT AND NON-REIMBURSEMENT

Opinions, comments? Will the Biden administration's Department of Labor fundamentally change how we are treated, paid, and re-imbursed?





Create an Account or Log In

Membership is free. Simply choose your username, type in your email address, and choose a password. You immediately get full access to the forum.

Already a member? Log In.

My thoughts is I don't wanna be no stinking employee.

smiling smiley

And I seriously doubt I would be "hireable", despite experience, as I am 100% disabled, and IC status allows me to work or not work. And believe me, some days I just physically cannot get in my car and go!
agree with all of that....but this post was talking about the law and what might occur, and whether our "employers" are bending the law to direct us.
A) I am totally outside the control of the MSC's with which I work: I take work - or not - at my leisure. They don't tell me where to go or what to do. They over little "jobs." Whether or not I choose to take them is a different matter entirely.

B ) This is the only one that might be like splitting hairs.... The MSC's business is to contract with clients to create shopping opportunities. The MSC does not perform the shops - that's not what they do.

C) As most of us are registered with many MSC's and sign ICA's stating that we are free to do so, this shouldn't be an issue.

I think we are pretty much all safely considered "IC's."

Hard work builds character and homework is good for your soul.


Edited 2 time(s). Last edit at 03/01/2021 08:55PM by MFJohnston.
Moreover, in the past 18-24 months, you will find several, extensive, discussions of this topic on the forums.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.
Oh, heck. I thought you asked for opinions and comments. I stated my opinion and made a comment.

@salisburync wrote:

agree with all of that....but this post was talking about the law and what might occur, and whether our "employers" are bending the law to direct us.
Nope, not controlling what I do the way that would define an employment relationship.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.
I think many of us who have worked as an employee would easily see the differences between this job and the employee job. Number one for me is I do not have to clock in every day in the morning and explain myself if I want a day off and risk getting fired if I take too many sick days without filling out a 20 page form and getting a docs note after three days off.
I pass the ABC test both here and out of state, but alas, I do not pass the final test; My pay is reported on W-2s. For 2019, I had four 1099s and three W-2s. It was a little complex at tax time.
I suspect that many states that use ABC may have deferred checking for compliance, due to the pandemic.
When a scheduler called me at 5 AM one morning in November, I told her that was absolutely not acceptable, as I am neither her child or her employee.

smiling smiley
Our agreement with the MSC is that we provide a service to the client’s instructions. This is how they get around that portion. We still have a choice on many aspects on most shops (day, time, etc.) we also have a choice on whether to accept the client’s instructions and do the shop or pass. I have my business set up as a corporation so they can 1099 my corporation, although now they don’t have to. It’s up to me to reports my business’ profit/loss. I’m with others I have no desire to be a MSC’s employee. I like my freedom way too much.
I'm thinking of a company I work with. They send me assignments in my area. They never ask. If I were to decline, it would be a problem unless I provide a valid reason (like illness). When I told them I was unavailable for two weeks last year, they couldn't quite get that straight and I didn't receive any work for several weeks after I was available.

The work I perform is an integral part of their business.

I signed up with another company that does the exact same thing company 1 does. I have my availability set in their portal. They email me projects and I can accept or decline. The work is integral to their business so I would say they pass the IC test.

Company 1, I am not so sure.
Sorry, only registered users may post in this forum.

Click here to login