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employee or sub-contractor

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jamesjl358

Guest
I am from Michigan and am a liscenced salesperson in the construction industry. The GC I work for hired me as a sub-contractor. By Michigan law I cannot work for another contractor. I am expected at the office, they set appointments for me and they supply me with a cell phone. I have said that I should be an employee for what they expect.
I am paid commission based on profit. I have no control over expenditures or the people doing the work. The additional tax burden and lack of benefits do not balance out to the supposed benefits. Is this even legal?
 


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lawrat

Guest
I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

Yeah it sounds legal. You are using their materials, their office, you get paid and have benefits. But you should check your relationship using a handy guide many people use:


http://www.irs.gov/prod/forms_pubs/pubs/p15a04.htm
 
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wowie

Guest
I am not an attorney and not a CPA. In my experience working in a CPA firm it sounds as though you should be an employee. Now, I don't know the exact laws of Michigan. In Ohio (and I thought federally) a contractor or sub contractor sets his/her own appointsments and his own work schedule and his own income usually all are defined in a contract. An employee is bound by the employers time schedule and whims--to a certain degree. This seems to be my standard answer to questions today, but I would ask a CPA. You could call the Bureau of Employment in Michigan.

Some businesses try to "illegally" work with subcontractors when they should have employees, but employees are much more expensive to the company than subs. Be aware that if you are diving for this company, you are NOT covered under their worker's comp since you are not an employee. You can get it for yourself for about $10.00/ half-year (depending on income). You are also not eligible for unemployment, because they cannot fire you. Read your contract carefully.
 
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jamesjl358

Guest
Tax laws

Thanks to all who posted their advice and or opinion. To say the least I have been getting a real education.
 

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