Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Path: utzoo!mnetor!seismo!lll-lcc!mordor!styx!ames!ucbcad!ucbvax!decvax!decwrl!labrea!Shasta!kaufman From: kaufman@Shasta.STANFORD.EDU (Marc Kaufman) Newsgroups: misc.legal,comp.edu Subject: Re: Sorry - Independent contractors and the law Message-ID: <1092@Shasta.STANFORD.EDU> Date: Tue, 6-Jan-87 11:11:14 EST Article-I.D.: Shasta.1092 Posted: Tue Jan 6 11:11:14 1987 Date-Received: Tue, 6-Jan-87 22:44:32 EST References: <2352@mtuxo.UUCP> <488@unc.unc.UUCP> <795@maynard.BSW.COM> <492@unc.unc.UUCP> <1085@Shasta.STANFORD.EDU> <21143@styx.UUCP> Reply-To: kaufman@Shasta.UUCP (Marc Kaufman) Organization: Stanford University Lines: 25 Xref: mnetor misc.legal:533 comp.edu:33 In article <21143@styx.UUCP> mcb@styx.UUCP (Michael C. Berch) writes: >In article <1085@Shasta.STANFORD.EDU> kaufman@Shasta.UUCP (Marc Kaufman) writes: > ... it is precisely what we are trying >to avoid! We do not *want* to be employees of the body shop, which >entails (in addition to withhholding tax) deductions for mandatory >unemployment taxes, workers' compensation policies, local employee >taxes, and makes it impossible to take the normal deductions for >business expenses that other self-employed people enjoy. Well, yes, but other "self-employed" people tend not to work exclusively for one broker (re-employer). I see nothing in this that makes it impossible to deduct business expenses. As for unemployment and workers comp, in California that is not necessary unless there are other employees. It sounded to me like the new law tried to eliminate under-reporting of income, late (quarterly) payment of taxes (rather than monthly), and the lower SSI rate given to "self-employed". If you don't "*want*" to be an employee of the body shop, do business in a manner that suggests you are truly independent, rather than "on-call". BTW: a secondary reason for the new law may be to try to protect technical people from unreasonable denial of ordinary benefits (e.g. vacation, sick leave, retirement plans). I know of several companies that have used "consultants" full time for an extended period, but have not given them the benefits of employees.