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Note that as a company you can't just re-hire as W2 contractors. Generally (as the article states) you need to have the employees form some sort of corporate en

Note that as a company you can't just re-hire as W2 contractors. Generally (as the article states) you need to have the employees form some sort of corporate entity or work for a corporate entity. Both employment and tax law will treat solo W2 contractors (or even single member LLCs) as full time employees if you're working full-time for a single entity. A lot of times companies will hide these types of contractors behind agencies, but its a tricky balance. Point being if you run a small company and are running into these types of issues talk to an accountant and or an employment attorney before thinking you can just hide full time employees behind a "contractor" label, its not a fool proof solution.

chopsueyar 15y ago
Where did he say he anyone was rehired as a W-2 contractor? 1099 could be possible (except for the whole work-for-hire IP issue).
- mikeryan 15y ago
  For the IRS or Employment law whether or not you are a fulltime employee has nothing to do with how your taxes are filed or paid. My point for those on this board who hire remote employees is that simply re-hiring as a "contractor" does not change them into "not a full time employee"
  - chopsueyar 15y ago
    Well, then the case could be made that they were incorrectly being treated as employees and should have in fact been contractors. The IRS looks at the common law rules between the two entities, based on three categories: Behavioral: http://www.irs.gov/businesses/small/article/0,,id=179111,00.html http://www.irs.gov/businesses/small/article/0,,id=179111,00.... Financial: http://www.irs.gov/businesses/small/article/0,,id=179113,00.html http://www.irs.gov/businesses/small/article/0,,id=179113,00.... Type of Relationship: http://www.irs.gov/businesses/small/article/0,,id=179116,00.html http://www.irs.gov/businesses/small/article/0,,id=179116,00.... There is even an IRS form, SS-8, which you can submit to the IRS to 'clarify' how the relationship should be treated... http://www.irs.gov/pub/irs-pdf/fss8.pdf http://www.irs.gov/pub/irs-pdf/fss8.pdf All of this information is available here: http://www.irs.gov/businesses/small/article/0,,id=99921,00.html http://www.irs.gov/businesses/small/article/0,,id=99921,00.h...

chopsueyar 15y ago

Where did he say he anyone was rehired as a W-2 contractor? 1099 could be possible (except for the whole work-for-hire IP issue).

mikeryan 15y ago
For the IRS or Employment law whether or not you are a fulltime employee has nothing to do with how your taxes are filed or paid. My point for those on this board who hire remote employees is that simply re-hiring as a "contractor" does not change them into "not a full time employee"
- chopsueyar 15y ago
  Well, then the case could be made that they were incorrectly being treated as employees and should have in fact been contractors. The IRS looks at the common law rules between the two entities, based on three categories: Behavioral: http://www.irs.gov/businesses/small/article/0,,id=179111,00.html http://www.irs.gov/businesses/small/article/0,,id=179111,00.... Financial: http://www.irs.gov/businesses/small/article/0,,id=179113,00.html http://www.irs.gov/businesses/small/article/0,,id=179113,00.... Type of Relationship: http://www.irs.gov/businesses/small/article/0,,id=179116,00.html http://www.irs.gov/businesses/small/article/0,,id=179116,00.... There is even an IRS form, SS-8, which you can submit to the IRS to 'clarify' how the relationship should be treated... http://www.irs.gov/pub/irs-pdf/fss8.pdf http://www.irs.gov/pub/irs-pdf/fss8.pdf All of this information is available here: http://www.irs.gov/businesses/small/article/0,,id=99921,00.html http://www.irs.gov/businesses/small/article/0,,id=99921,00.h...