Members of the Maryland Association of Certified Public Accountants are answering readers’ tax questions through today.
Q: I work for a corporation that considers me an independent contractor. I work 1,248 hours a year. I work on the premises; ~ ~TC use their instruments, I am on a fixed schedule and am being paid by the hour, a fixed income. I want to know if I am considered to be an independent contractor or am I considered a part-time employee?
A: Every individual who performs services subject to the will and control of an employer, both as to what is work and how it shall be done, is an employee for income tax withholding purposes. This includes: elected or appointed officers; employees of the United States, a state or territorial (Puerto Rico and Washington, D.C.) government or a political subdivision, agency or instrumentality therein.
An individual is an “employee” as long as the employer has the legal right to control both the method and the result of the services (for example: where the employer has the right to discharge, provides the tools and furnishes a place to work). In general, persons who are in business for themselves (lawyers, physicians, construction contractors, public stenographers) and others who follow an independent trade, business or profession in which they offer their services to the public, are not considered employees.
The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.
