Successful Business Handbook

Associated Bodywork & Massage Professionals

Issue link: http://cp.revolio.com/i/142672

Contents of this Issue

Navigation

Page 54 of 184

employee or independent contractor? Congratulations! Your practice has blossomed to the point where you have more requests for services than you can fulfill. You hate to disappoint people by turning them away, but you also don't want to risk your health by overdoing the work. You have decided the best solution is to engage another therapist to take on part of the workload. Eventually, the potential is there for a new person to become your business partner, but you have taken risks (spent money on advertising, signed a lease) and worked hard to build your community reputation. It doesn't make sense to leap into a partnership arrangement with an untested stranger. Besides, you deserve some of the reward from another person's labors because it is your good work that has brought this growing number of clients to your doorstep. Asking The Questions Should you hire an employee? Or would you be better off engaging an independent contractor to provide services at terms the two of you negotiate? These sound like simple questions, yet the decision is fairly complex, getting at issues like control, service quality consistency, and tax and record-keeping responsibilities. From your perspective, the key is how much you expect from this new person and how much direction you feel you need to provide them. You cannot, however, simply choose to label that person employee or independent contractor. Ultimately, the correct designation depends on how that person's work nature and responsibilities fit under a broad array of federal statutes governing the workplace. These include: • ncome/withholding taxes I (including FICA and FUTA). • vertime pay requirements O set forth in the Fair Labor Standards Act. • RISA (Employee Retirement E Income Security Act). • SHA (Occupational Safety O and Health Act). • nemployment Compensation. U • orkers' Compensation. W • MLA (Family and F Medical Leave Act). • itle VII (race, age, sex—including T sexual harassment, religion, national origin, and age discrimination). • DA (Americans with Disabilities Act). A • DEA (Age Discrimination A in Employment Act). • DA (Pregnancy Discrimination P Amendment to Title VII). While each of these laws has a slightly different twist, they all try to get at the nature of your work relationship with your new colleague. To determine whether the work relationship evidences an employee or independent contractor relationship, you should consider the following factors. A yes response to a factor indicates an employee. A no answer indicates an independent contractor. 1. nstructions. Do I have the I right to provide instructions that will guide the worker in performing required duties? 2. raining. Am I providing the T necessary training that will enable the worker to perform required job functions? 3. ntegration. Does the worker I perform services that are substantially similar to those provided by the business? Are those services integrated into my business? Is my business dependent at least in part on those services? 4. ersonal Services. Is the P worker personally providing the necessary services as

Articles in this issue

view archives of Successful Business Handbook - Associated Bodywork & Massage Professionals