Contractual Benefits

[gegelo2012@]

What are the usual benefits for contractual employees? Because I'm a contractual employee but it seems we have no benefits. And we are now on 1 year as contractual employee. Is that okay?

 

[Arthur Rudnick]

Are you an employee or a contactor? You can't be both.

If you are an independent contractor and you're issued a 1099, there are usually no benefits provided.

If you are an employee and receive a W2, any benefits available to you should have been discussed when you were hired.

 

[TwiLight]

Technically you are an employee if you do not hold yourself out as a separate business and your schedule is controlled by your boss. (only licensed businesses such as Insurance Agents and Real Estate Agents are excluded from this rule). However, if you are captive you would be considered a Statutory employee and subject to EE and ER deductions for SocSec and Medicare and in some States must be covered by Unemployment Insurance. States like NV must include Contractors (1099) in their unemployment tax contributions.

Many companies think that signing an independent contractor agreement makes it OK. The Federal gov't has strict compliance features on this. Now in TX, you have to watch out, since Work Comp is not a legal requirement and is easier to back out of liability as a contracted employee.

However, the rules in TX do not supplant Federal guidelines and to be a independent contractor there is a test for this. Go to: Independent Contractor (Self-Employed) or Employee? to read the IRS guidelines in this area.

 

[junkman]

I have an accountant friend that says the IRS guidelines for Statutory employee do not reflect the actual law. He also claims to have challenged and won for a client who wanted to give all eligible employees the benefit of being Statutory.

 

[ABC]

Most health carriers will insure 1099 employees as long as the group meet certain requirments.