4 ms·

As unfortunate and depressing as it is, a lot of that is required or strongly encouraged by the IRS. Otherwise, it starts treating the contractors as actual emp

by puzzle 8y ago

As unfortunate and depressing as it is, a lot of that is required or strongly encouraged by the IRS. Otherwise, it starts treating the contractors as actual employees: https://www.irs.gov/newsroom/understanding-employee-vs-contractor-designation https://www.irs.gov/newsroom/understanding-employee-vs-contr... Sadly, the entire point is that they are not employees, let alone second class ones. In the end, it boils down to the perennial question of how much of your work is done by employees and how much by vendors. And it always leads to awkward situations. (Quite a few of those when I was an employee at Google and something I don't see as much anymore, luckily.)

learc83 8y ago
This is almost definitely not about the IRS--or at least it is only to the extent that Walmart might use that as an excuse. It's very likely that Walmart is already treating them as de facto employees with scheduling and management practices. Letting them eat at Thanksgiving isn't likely going to be to be the straw that tips the scales to employee. IRS: here's a list of things that can be evidence you are using contractors as employees. Walmart: OK we'll ignore every single one of them except that we won't provide them with health insurance, we won't withhold tax, and we won't let them eat Thanksgiving dinner or go to the movies. There is a massive problem with employers skirting the law with respect to this, but companies don't care because enforcement isn't consequential enough to make them care.
- nemothekid 8y ago
  I thought the whole reason companies care this much is because it enforced. The go to example of what happens when you treat contractors like employees is what happened to Microsoft where they got sued for breaking this line. https://www.reuters.com/article/businesspropicks-us-findlaw-dont-treat-c/dont-treat-contractors-like-employees-idUSTRE53063S20090401 https://www.reuters.com/article/businesspropicks-us-findlaw-...
  - learc83 8y ago
    That happened in 1989/1990. The regulatory landscape has changed a lot in 30 years. Also I'm not saying it's never enforced, I'm saying the enforcement isn't consequential or consistent enough to convince companies to stop treating contractors like employees.
syn0byte 8y ago
Sure. So a contractor gets flexible hours, the possibility to telecommute and leeway on how projects are handled right? Give that a try some time as a contractor and let us know how hard the company tries to abide by those rules. I'm sure it'll work out swell.
deleted 8y ago
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by puzzle 8y ago

learc83 8y ago

This is almost definitely not about the IRS--or at least it is only to the extent that Walmart might use that as an excuse. It's very likely that Walmart is already treating them as de facto employees with scheduling and management practices. Letting them eat at Thanksgiving isn't likely going to be to be the straw that tips the scales to employee. IRS: here's a list of things that can be evidence you are using contractors as employees. Walmart: OK we'll ignore every single one of them except that we won't provide them with health insurance, we won't withhold tax, and we won't let them eat Thanksgiving dinner or go to the movies. There is a massive problem with employers skirting the law with respect to this, but companies don't care because enforcement isn't consequential enough to make them care.

nemothekid 8y ago
I thought the whole reason companies care this much is because it enforced. The go to example of what happens when you treat contractors like employees is what happened to Microsoft where they got sued for breaking this line. https://www.reuters.com/article/businesspropicks-us-findlaw-dont-treat-c/dont-treat-contractors-like-employees-idUSTRE53063S20090401 https://www.reuters.com/article/businesspropicks-us-findlaw-...
- learc83 8y ago
  That happened in 1989/1990. The regulatory landscape has changed a lot in 30 years. Also I'm not saying it's never enforced, I'm saying the enforcement isn't consequential or consistent enough to convince companies to stop treating contractors like employees.

syn0byte 8y ago

Sure. So a contractor gets flexible hours, the possibility to telecommute and leeway on how projects are handled right? Give that a try some time as a contractor and let us know how hard the company tries to abide by those rules. I'm sure it'll work out swell.

deleted 8y ago

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