By Will Temby
OK, so we’ve been talking about myths in the industry all week. Here’s my favorite:
Myth: It is legal to flip an employee to contractor status.
The reality, folks:
Labels are not so important when dealing with the difference between an employee and a contractor.
What is key is who has the right to control the worker’s performance.
Using the services of an ex-employee under the guise of a contractor relationship could raise a red flag with the Internal Revenue Service and could open your business to liabilities for unpaid payroll and other employment taxes.
Oh, and don’t forget about the potential for unpaid overtime if the employee works more than 40 hours in any week.
That’s it for myths for now. Got questions on any of this stuff, let us know.
About the Author
Will has enjoyed a 20-year career in leadership positions in the hospitality and travel industry throughout the U.S. with the Hyatt, Sheraton, Hilton, Renaissance and Steamboat Ski and Resort corporations. Will received a Bachelor of Science degree from the University of Massachusetts at Amherst. From 2000-2007, he served as President and CEO of the Greater Colorado Springs Chamber of Commerce. He also served as Vice President-Special Projects for the University of Colorado Foundation from 2007 to 2009. Will is a past Chair of the Board of Directors of the National Homeland Defense Foundation and former member of the United States Chamber of Commerce Committee of 100. He is married to Nan, has five wonderful children, and enjoys coaching, traveling, hiking, golfing and skiing.