Career Questions and Answers
Can some explain to me what is contract labor?
Asked by petersmith
currently im working in as a kitchenhand.. the boss only want to pay me in cash.. no payroll, no pay sllip, no record. The thing should i put this not legal "job" into my CV as a contract labor? i only do 8 hours a week. SHould i or should i not. im scared they might ring the tax office. (Boss refuse to put me in the book, save him $), so i have no record watsoever of working there..
WHat do you guys think, any tips, suggestion thanx alot.
A:
Best Answer:
Contract Labor means that you are an independent contractor. You maintain a large degree of control in how you perform your work for a client, operating as your own small business. This is the same as if you started your own business as, for example, a plumber. You would provide all of your own tools, buy your own insurance, and figure out your own taxes. You also would get to set your own work hours, be able to refuse work, and charge your own rates.
Sometimes, a boss may try to incorrectly classify his employees as contractors because that saves him the time and expense of figuring out tax withholdings as well as the expense of certain taxes and insurances that are paid by employers. Incorrectly classifying employees as contractors is a form of tax evasion and subject to some pretty stiff fines.
The determination of employee vs. contractor generally depends on your degree of independence in how you perform your job. Laws can vary by state, but in general:
- Are you told what hours and days you must work?
- Do you have to work at a specific site?
- Is your work closely supervised?
- Does the boss tell you exactly how to perform your job?
- Are you paid by the hour?
- Can you quit the job?
If you can answer "yes" to most of these, you're an employee. I'd talk to the owner or HR and tell them what is going on. Your state labor commissioner's office may be very interested in what is happening.
12 years HR experience and a legitimate Indendent Contractor
Answered by Rob B
Best Answers are selected by the person who asked the question or other Yahoo! users.
Find out more at
Yahoo! Answers