• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

independent contractor VS employee

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

E

ExLady

Guest
What is the name of your state? tenn
I worked for a company in tenn that hires on ladies to do home parties. They require us to attend meetings, to buy a "starter kit", maintain inventory, report our monthly sales, they train us and provide us with a way to process credit cards. We are requried to use their order forms and must have any advertising we do "okayed" by home office. In our contract, that has a hefty no-compete and non-disclosure clause, it states that there is no employee-employer relationship. I guess I should explain that we buy our inventory from them then sell it at the price that is decided by them. We then get to keep the difference.
So I guess I'm quite confussed as to why we do not receive 1099s from them. When I look at the IRS exhibit 4640-1, it looks as if more of the deciding factors would label us as employees. My accountant was baffeled as well.
Oh yea.....this was stared by the fact that the company will not provide me, or my accountant, with my gross purchases.
Anyone out there have any thoughts on this?
Thanks,
Amy
 


abezon

Senior Member
You don't get a 1099 because you weren't working for the company. They gave you a supplier contract & you bought whatever inventory you wanted to buy & resold it at the contractually required prices. You wouldn't expect the grocery store to give you a 1099 if you bought food from them to cook in your restaurant, would you? Keeping track of your inventory purchases is your responsibility.
 
E

ExLady

Guest
I understand your example, however, the grocery store would not require me to attend meetings or hand in monthly sales reports. Again, when looking at the IRS' outlines, it appears that I am an employee.
I have kept track of all of my information that I need. The company has also kept track of it all. I was just hoping to confirm that our numbers matched.
Thanks,
Amy
 

abezon

Senior Member
You weren't an employee. The conditions of the contract are more like franchise terms than employment terms. They didn't tell you what hours you had to work, or pay you regardless of results.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top