Independent Contracting

Question

Independent Contracting

schrabob (Automotive)

(OP)

15 Aug 09 15:28

I am a Design Engineer who has been unemployed for the last 5 months. I recently have been offered temporary assignment for 4-6 months and looking forward to getting back to work. They want to pay me as an independent contractor and work at their office using their equipment.

Should I have any concerns with this scenario? I have always either worked direct or through a job shop.

Thanks!

byrdj (Mechanical) · Answer 1 · 2009-08-15 15:59:01

I had a similair offer. The customer assisted by listing all the requirements I needed to become an approved vendor/contractor.

I had to incorperated and obtain required insurance. Since the customer aproached me to become a contractor, I was able to negotiate on liability and insurance.

The kind of bad thing was I lost unemplyment when I became owner of a corperation.

schrabob (Automotive) · Answer 2 · 2009-08-15 16:58:39

Unemployment is one of my concerns. Currently I am eligible for 50 additional weeks of unemployment. I want to make sure that unemployment will be there for me if I am once again without work at the end of the 4 month contract.

MacGyverS2000 (Electrical) · Answer 3 · 2009-08-15 20:30:38

I'm an LLC and it has zero effect on unemployment... YMMV.

Dan - Owner
http://www.Hi-TecDesigns.com

Ron (Structural) · Answer 4 · 2009-08-15 20:37:30

schrabob...either get prof. liability insurance or have the employer indemnify you for all actions, negligent or otherwise.

Make sure your contract places all the liability on them, not you.

diarmud (Civil/Environmental) · Answer 5 · 2009-08-17 15:18:06

If your concerned about unemployment, call or talk to the local unemployment office.

I believe owners are in most cases ineligible for unemployment in the US (I know of two cases where owners were deined unemployment), BUT I could be wrong.

Good luck.

TheTick (Mechanical) · Answer 6 · 2009-08-17 15:37:39

In the U.S., the situation you describe is a bit dodgy. The IRS has gotten much stricter about this exact sort of thing. They have a questionnaire that helps clarify your status.

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