Whether or not a worker is an independent contractor or an employee under the law depends on the amount of control and supervision you have over the work they do. If a worker is an employee you are responsible for deducting payroll taxes, carrying unemployment and worker's compensation insurance, and increased potential liability for the conduct of the worker. There are many other considerations. I recommend that you read the attached Michigan Guide to Starting and Operating a Small Business (below the disclaimer) and then make an appointment with an attorney to make sure you have everything related to your business in compliance with the law.
DISCLAIMER: This answer is provided as general information, which may not be appropriate for the specific facts of your particular situation. No attorney-client relationship has been established based on this limited communication. You are advised to consult with an attorney in your jurisdiction before taking any action or inaction that may affect your legal rights. www.hecklerlawoffice.com
Christine is correct. I recommend purchasing Quickbooks or contacting ADP to manage employer payroll expenses. Best of luck - Reese Serra
This advise is only being offered as a courtesy. We do not have an attorney-client relationship and I do not represent you. Additional, the advice I have provided was based on the limited fact pattern provided by you. If the facts differ, my advice may not be correct. If you live in Michigan and would like legal assistance with your issue, feel free to contact me: 586-615-0756
Yes it is possible.. but it requires you to withhold taxes, pay the employers portion of social security, unemployment and have workers compensation insurance, etc. As such, I always reccomend going with a payroll company .. its easier in the long run. I have had several clients that have been audited by the IRS recently that tried to reclassify pure independent salesmen into employess so if you do not you could be liable for these extras anyway.
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What are you trying to accomplish by doing that? If you are trying to retain your rights to your record label or other purposes, you can always have them sign a contract. You are welcome to call me and we can discuss your goals further.
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