

1099 and the Upcoming Elections - calhires
http://blog.axlehire.com/index.php/2015/06/12/1099-status-quickly-becoming-focal-point-for-2016-elections/

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MichaelCrawford
thanks for posting this; I've been doing 1099 off and on since 1990.

It's important to understand that the legal distinction between a contractor
and an employee does not depend on one's job title nor contractual
relationship. Both federally as well as in at least some states such as
california, what counts is the nature of the relationship and not what is
written down.

What determines this federally is known as "the twenty factors" and is also
commonly called "the twenty questions". There is no specific score one must
obtain to determine whether one is a contractor, rather it is a purely
subjective decision that is quite commonly made by labor judges as well as the
tax authorities.

Among the factors are whether one faces financial risk in the event the
project fails. When I am an employee I get paid even if my code doesn't work;
I might get fired but even so I get paid for the hours I've worked.

Other factors include whether one provides one's own equipment - including
software in our case - whether one can determine one's own working hours, as
well as how the work is performed.

If I am a contractor then you pay me for a deliverable which may have a fixed
deadline; at that point I am free to determine how the deliverable is
prepared. There is no particular requirement that I show up to your office.

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MichaelCrawford
One more thing - while there are some laws having to do with gender and racial
discrimination in contracting to the extent any exist they are far weaker.

