Contractor/Employee status problem
by CrissyEntrepreneur, Window Shopper
- Created: April 8, 2013, 6:04 pm
Help! I'm so confused trying to do what is right to comply with CA employment law. I have two full time employees where I offer them full health care coverage, vacation pay, etc... I have a contractor also working for me who refuses to become an employee. We pay him a very high rate of $100/hr as an engineer. Average salary for his level would be in the $135k - $145K range. He also works for another company as a contractor. So makes more money as a contractor. I have repeatedly offered to hire him as our employee, but he refuses. I think he likes the feeling of coming and going as he pleases. However, he pretty much camps out at our office and on weekends. As far as I can assess, he fits the "employee" classification, except for the coming and going as he pleases. We don't care because he is paid hourly, so as long as he accounts for his work, we are OK. But avoid problems, I would like to make him an employee without changing his work relationship with us. We can offer the following and still financially afford it: 1) Part-time hourly employee capped at under 25-30 hours/week. 2) No benefits. 3) We would, of course, pay the employer share of payroll taxes which will add 15-20% overhead to his $100/hr rate. I think under this condition, he might accept the "employee" status with us. He can still work hourly and work for other people, so it doesn't change the working relationship. We cannot pay him full time because we would be overpaying and can't afford it. Can anyone let me know if this would work? Thanks.
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