Workman's Comp. for Independent Contractor's

Joe is a carpenter in Illinois. He takes jobs from a company that bids for insurance jobs. (Houses that have been damaged by fire, water, etc.) This company pays Joe as an independent contractor. Joe in turn hires a few people to help him with the job. The company said that they will not hire Joe for any more jobs unless he gets workman's comp. for him and whoever he hires. Now, Joe is telling his worker's, that he wants to pay them as independent sub-contractors. Currently he's paying them in cash out of the check he gets. He also is saying that he wants to take 10 percent, or $2.00 an hour out of their pay to pay for workman's compensation. What are the legal rammifications on that?

[Edited by Deb0102 on 01-20-2001 at 10:41 AM]

As far as I can see, Joe is going to get into some deep, hot, water. So long as he controls the terms and conditions of employment of his "independent contractors," he is an employer. As an employer, he is fully liable for all relevant taxes, insurances, etc. Joe thinks he can get away with what he is doing, and perhaps he might, for a period of time, but Joe is putting himself in a position that could land him in jail and/or cost him buco bucks. If what Joe was doing was legal, don't you think everyone would be doing the same thing?