Relationship Issues
Over the past month or so, I delved into labor laws and IRS regulations to untangle the confusion surrounding employment status-namely, what distinguishes employees from independent contractors. And, as many of you already know, it's not easy. All those conditional statements and vague descriptions that are supposed to "guide" employers and workers to determine a fitting status make things more complicated than they need to be.
To be honest, it reminds me a lot of relationships. Every couple faces that awkward moment of assuming titles-one wants to cross the defining "boyfriend/girlfriend" line, while the other is just fine being the free-flowing couple they are. Sometimes, having that "What are we?" discussion just screws up everything that was good about what they were. There are no defined rules, so every relationship is different; what constitutes "boyfriend" for one, might work just as well being called "that guy I'm seeing" for another.
But unlike personal relationships, business relationships have to worry about government oversight. Employment status affects what benefits a worker receives and who pays what tax-wise; pick the wrong status, and you may find the IRS breathing down your neck.
I addressed several issues and unanswered questions in my article, which you can read next week-it's our December cover story, shipping out on Monday! But I knew there were still more scenarios on the table.
Sure enough, while trolling Web forums yesterday, I stumbled across this post on MT Chat. An MT inquired about proper compensation for on-call time. Now, I've never had the, ahem, joy of being on-call, but based on the sighs my nursing friend heaves when she talks about on-call nights, it's not fun. Turns out, it can also be a headache for employers. Do the additional hours constitute overtime? Will the work cut into the employee's normal schedule? And of course, there's the status stipulation, so employees may get paid while ICs won't.
Have you ever struggled to define your employment status? Do you agonize over tax forms? Comment below, and make sure to read "What's Your Status" in our November issue!