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Can family members be hired as independent contractors?

San Diego, CA |

Immediate family members that is. What about all other family members?

I know how the IRS decides to classify an independent contractor vs an employee so I'm clear on that, just need to know if there would be any issues hiring them as contractors when that really is what they will work as.

Thank you.

Attorney Answers 3

Posted

There is no law that prevents family members from being hired as employees or as independent contractors. The fact that they are relatives may cause the IRS to look at the situation with more suspicion, but if you follow rules for independent contractors it will not be a problem.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of California. Responses are based solely on California law unless stated otherwise.

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Posted

I agree with my colleague.

The post at the link below discusses factors that are involved in an independent-contractor analysis.

Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.

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Posted

Just because you list them as independent contractors does not mean they meet the criteria under Ca law. You should consult an attorney who specializes in that issue.

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