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Are you Using Independent Contractors or Employees?Are You Using Independent Contractors or Employees? We often get requests for advice on the choice between using Independent Contractors (IC’s) or employees as supplemental pet-sitting staff. Based on our most recent State of the Industry Survey, statistics show that as a pet-sitting business matures and additional staffing becomes necessary, PSI members turn to part-time IC’s to fill the need. Though PSI is not in a position to advise you one way or the other on this decision, we are happy to provide the following resources.
Employment regulations change and vary, both at federal and state levels. Before making this decision for your business, we highly recommend that you seek the advice of an attorney and consult with your accountant. In order to determine wages, the law requires that a business must first define its workers as employees or IC’s. The trick is to properly interpret the law as it applies to your situation. You may contact an attorney to help you with this interpretation or consider the U.S. Department of Labor and/or the Department of Labor in your state.
The USDOL provides this information in simple language. The Independent Contractor debate rises largely out of the Fair Labor Standards Act (FLSA) requirements. The Department of Labor enforces the Fair Labor Standards Act (FLSA), which sets basic minimum wage and overtime pay standards. These standards are enforced by the Department's Wage and Hour Division, a program of the Employment Standards Administration.
The USDOL Web site is http://dol.gov. Contact information for state departments can be found on the federal site as well, under State Labor Offices. Most states have regional representatives who will answer specific questions for you. You can reach them by calling the number listed for the state office.
A good resource for FLSA compliance information is http://dol.gov/compliance/laws/comp-flsa.htm.
The Fair Labor Standards Act Advisor defines Independent Contractors at http://dol.gov/elaws/esa/flsa/scope/er14.asp.
More information on the IRS definition can be found at http://www.irs.gov/businesses/small.
Follow these steps: - Click on Businesses with Employees - Select Who Are Employees? - Click "Who Are Employees?" link to access Independent Contractors vs. Employees
You may also want to visit the following links to specific articles addressing this issue: http://www.irs.gov/businesses/small/article/0,,id=99921,00.html http://www.dol.gov/esa/regs/compliance/whd/whdfs13.pdf
We hope you will find these resources helpful in determining what is right for your staffing needs. |
