ArtLinks complies with this practice for all its temporary employees. If the worker is a legitimate independent contractor, reporting to EDD is not required. Fines are extensive if you incorrectly classify an employee. The following questions will help you to make the correct determination for your business. If the answer to any of the following questions is Yes, it is a strong indication that the worker should be an employee and you have a high probability of risk if you pay the worker as an independent contractor.
Independent contractors are free to do jobs in their own way, using specific methods they choose.
A person or firm engages an independent contractor for the job ' end result. If you have the right to fire the worker without notice, it indicates that you have the right to control the worker. Independent contractors are engaged to do specific jobs and cannot be fired before the job is complete unless they violate the terms of the contract. They are not free to quit and walk away until the job is complete. For example, if a shoe storeowner hires an attorney to review his or her lease, the attorney would get paid only after satisfactory completion of the job.