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  1. #1
    Join Date
    Dec 2016
    Posts
    1

    Default Who is the Employer of Workers Placed at a Third Party Site

    My question involves labor and employment law for the state of: New York.

    I recently launched an event planning firm as sole prop. My job is to coordinate free food sample events at super market. Basically, I get orders from food company/mart, recruit people who will give out free samples at the market. I handle scheudling and provide equipments needed to cook. I get paid from food company, remit the agreed pay to the demonstrator and retain the rest as my service fee.

    Events are hosted during weekend. Demonstrators are mostly females over 40 (some college students) and have other part/full time job during the week. Some demonstrators stick around while others work as short as 1 weekend. Demonstrators decide whether to work or not, when to work, etc. I coordinate b/w food company's and their schedules. There are no written contracts between food company and mine, mine and demonstrators.

    My question is, who is the employer of the demonstrators? Me or the food company? Or are they considered independent contractors?

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Employee Classification

    It sounds like YOU are their employers and they do not qualify to be considered independent contractors. You must do all the things employers do (withhold taxes, pay the employer's share of the FICA, pay the UI, have workmans comp coverage, etc...).

    Just because they can schedule their own hours doesn't override the other behavioral and financial tests that would allow them to be characterized as an independent contractor.

  3. #3
    Join Date
    Feb 2008
    Posts
    1,179

    Default Re: Employee Classification

    have to agree you would be their employer and should be charging enough to pay employment taxes....Especially if there are no contracts involved all the way around.

    How are you currently paid by the food companies? How do you currently pay the demonstrators? If you don't have good records and the food company 1099's you, you better believe the IRS is going to want someone to be paying taxes on that income.

  4. #4
    Join Date
    Dec 2009
    Location
    Lake Chapala
    Posts
    3,043

    Default Re: Employee Classification

    Posts 2 and 3 are the most accurate.

  5. #5
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Employee Classification

    Quote Quoting Raster
    View Post
    I have no doubt they are your employees....but under some fact patterns they may also be employees of the food company or the store which is paying for the person to be there handing out samples .
    I can see no way, with this set of facts, that they could be the employees of the store or the food company. That is way too far out there.

    The IRS and NY wants taxes paid ...the real tough stuff begins if an employee is seriously injured on a work site....and I suspect many casual employees want to work off the books for a variety of reasons...but you are in line of fire..
    Who said anything about working off the books? The OP certainly did not. Working as an independent contractor is NOT working off the books. Its not appropriate in this case, and the workers definitely should be treated as the OP's employees, not independent contractors, but its still not working off the books.

  6. #6
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Employee Classification

    I can see no way, with this set of facts, that they could be the employees of the store or the food company. That is way too far out there.

    Consider the source, ll. He spends all his time making up facts and then providing "advice" to suit his made up facts and not the ones the poster provided at all. He's been banned from this board once already and from at least one more I know of - it's only a matter of time before he gets run off again.

  7. #7
    Join Date
    Dec 2009
    Location
    Lake Chapala
    Posts
    3,043

    Default Re: Employee Classification

    Quote Quoting cbg
    View Post
    I can see no way, with this set of facts, that they could be the employees of the store or the food company. That is way too far out there.

    Consider the source, ll. He spends all his time making up facts and then providing "advice" to suit his made up facts and not the ones the poster provided at all. He's been banned from this board once already and from at least one more I know of - it's only a matter of time before he gets run off again.
    Aaaah I thought the username looked familiar!

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