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Why is it that w-2 employees of a different company can’t be invited to a lunch or given a tchotchke? I get why 1099s can’t but what’s the deal with the other,
by bradleyjg 3y ago
Why is it that w-2 employees of a different company can’t be invited to a lunch or given a tchotchke?
I get why 1099s can’t but what’s the deal with the other, now more common situation?
- mtnGoat 3y agoThey could be, but that creates taxable events and other issues/complications/liabilities. Easier to just avoid and be clear of it.
- lazide 3y agoBecause this [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-...]
- bradleyjg 3y agoThat’s about 1099s
- lazide 3y agoAnd temps. And vendors. Anyone who does work that could be considered for the primary company if they got treated that way.
- bradleyjg 3y agoNothing in your link suggests that it extends beyond independent contractors.
- lazide 3y agoIt was a followup court case which agreed it does - https://www.nytimes.com/2000/12/13/business/technology-temp-workers-at-microsoft-win-lawsuit.html https://www.nytimes.com/2000/12/13/business/technology-temp-... And the ruling makes it clear that it’s based on the actual on the ground reality, which is why vendors get pulled in the same way. If the main company is the one giving the vendors employees their direction, managing them, setting hours explicitly, they get included in all hands, etc. then the main company is also on the hook for being their actual employer as far as benefits, taxes, etc. go. So there needs to be a clear delineation at all times, or bad things happen to the primary company regarding costs.
- saagarjha 3y agoIIRC they can, but only if the other company is also paying some proportion of the costs relative to how many of their employees are present, or something like that. It's been a little while but the rules are in some training presentation or other.