Hiring an "in-house Telemarketer"...

[csmith2]

I am planning on hiring someone to make cold calls and set appointments for me. What would be necessary to get them classified as an independent contractor?

They will be primarily working from home since I do not have space for them yet; they will be providing their own phone and internet service, their own computer and are allowed to choose which days to work.

I will be controlling compensation and the time of day the calling sessions take place; as well as providing calling lists, a headset, an email account, basic script and some expectations...

I have read about it some on the IRS website as well as a few trade publications but I am still confused. It seems like this could be walking a fine line.

Is it all in how I word their working agreement? Any contributions are greatly appreciated!

 

[Josh]

I have my telemarketers work from home (login using the dialer) and then I 1099 them at the end of the year. If they're working offsite that in and of itself is usually enough. It also helps if they do other work like this for other folks, but not necessary. If you move them into your office it starts becoming more of a w2 type relationship.

 

[leevena]

You should review the IRS information about this, it may not be as easy as you believe.

Independent Contractor (Self-Employed) or Employee?

 

[csmith2]

You should review the IRS information about this, it may not be as easy as you believe.

Independent Contractor (Self-Employed) or Employee?

Thanks for the link but that was exactly what I had read through right before I made this post.

Because of what I described above and the fact that this is only a part time gig (12-14 hours per week) I am leaning towards it being an IC position.

I did notice that I can file a form SS-8 with the IRS to get a determination but it takes SIX MONTHS to hear back... Thats just time I don't have to waste right now...

 

[arnguy]

Basically, as long as you are not in complete control of the telemarketer you will not have a problem. Controlling compensation, providing a headset, calling lists, etc., are not controlling factors. IMO even setting time of day to make calls would not have an impact. If as Josh indicated you move him/her into your office with set hours, then the situation changes to an employer/employee relationship requiring withholding of taxes and contributing 1/2 of the Social Security. At that point a W-4 from the telemarketer would be required and a W-2 issued at the appropriate time.

 

[djs]

If they are free to do the same type of work for someone else (even if they chose not to), then you have a decent shot of them being an independent contractor.

They must have control over their work product, i.e., they control how and when the work gets done, within guidelines of what you set. Working from home has only a small bit to do with it, and if someone chooses, you can get sued (and lose) over this.

Anything short term is MUCH easier to defend as an independent contractor than long term. My recommendation is you do a month long contract with your telemarketer and simply renew it every month, if performance warrants. This does 2 things for you:
- Sets it up as a short term engagement (you can even do quarterly if you prefer).
- Gives the engagement a contract, rather than any chance someone implies its an employment agreement.

This also gives you a chance to state clearly that they are an independent contractor, they are free to work where they want (with stipulations, such as it has to be a professional environment), when they want (again, you can say stuff like evenings, or 3 evenings a week, but don't say for 3 hours between 5&8). You also stipulate that they provide the general tools of the trade, you will supply specific items, such as a script.

Odds are, it would never be an issue, but, its better safe than sorry. Alternatively, hire them as an employee, even though they work out of their house. You can even make it a temp job.

Dan

 

[NinjaNic]

got mine on odesk for $8 an hour. pay odesk and let them figure it out...

oh btw, she is in the phillipines

 

[Josh]

got mine on odesk for $8 an hour. pay odesk and let them figure it out...

oh btw, she is in the phillipines

That's a lot for a Filipino.

 

[Bertolinoins]

got mine on odesk for $8 an hour. pay odesk and let them figure it out...

oh btw, she is in the phillipines

What are her results like? How many X dates and appointments per hour or day is she getting?

 

[csmith2]

got mine on odesk for $8 an hour. pay odesk and let them figure it out...

oh btw, she is in the phillipines

I also looked at this and it seemed like it was going to cost me about the same either way. I was only planning on paying my local person $8.25 per hour plus some small incentives. Other than the employee/IC issue the big difference to me was that with someone local I felt like I could have more control.

That's not to say I'm not open to hiring an odesk IC. I actually have a posting on there as well and have received numerous voice recordings from applicants. I am amazed at how little of an accent they have.

I am VERY curious how you have been using your odesk contractor and what your results have been like.