REFERENCES 1 Public Law 95-600 2 Revenue Procedure 85-18, 1985-1 C.B 518, Section 3.01 3 General Investment Corp. v. United States, 823 F. 2d 337 (9. Cir. 1987) 4 California Business – Professions Code, Section 4980.43 (b) 5 California Business – Professions Code, Section 4982 (u) This article appeared in the January/February 2005 issue of The Therapist, the publication of the San Diego, California-based California Association of Marriage and Family Therapists. The information contained in this article contains guidelines for resolving legal dilemmas. There are no plans to deal with any situation that may arise, nor to substitute for independent legal advice or consultations. When using this information as a guide, note that laws, regulations and technical standards change over time, so all references or information contained in them should be checked and updated.
Second, this model of agreement should not be considered «everything and everything» of independent contractual agreements. It`s a starting point, not a finish line! Organizations still need to look at their organizations in light of the 20 factors mentioned above and determine which factors require special attention, given that, given what the organization does, it may appear that the worker is being controlled as an employee. Such organizations should work with their lawyers and accountants to resolve these issues. Such experts may then recommend amending certain provisions of our model of agreement. In any case, we encourage this activity because these professionals have a close vision of the organization concerned. One of the morals with regard to the classification of marriage and family therapists as independent contractors is that, under the watchful eye of the law, it is not enough to qualify someone as an independent contractor or to designate someone as an independent contractor in any type of agreement, and that this statement must be made on the eve of a judicial or administrative proceeding. These are misunderstood ideas. If a worker is really an independent contractor, he should not be controlled as a worker. However, an organization may inadvertently implement the self-employed status of the self-employed supplier to the worker by not understanding the differences between workers and self-employed contractors. As we saw in the article «Thoughts On Classifying Marriage – Family Therapists As Independent Contractors Versus Employees,» published in the November/December 2004 issue of The Therapist, the real fundamental problem is the degree of control exercised by the organization over the worker. Does the organization manage the means and methods of carrying out the work? If so, regardless of what the organization calls the work force, it is an employee.
Remember, it`s the substance of the relationship, not the label that`s important. According to the IRS, individuals such as physicians, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers or auctioneers who work in an independent activity, business or profession in which they offer their services to the general public are generally independent contractors. The general rule is that a person is an independent contractor if the payer has the right to control or direct only the outcome of the work and not what is done and how it is done. The income of a person who works as an independent contractor is subject to the self-employment tax. The relationships of independent contractors can be complex, both in terms of settlement and management. An organization`s understanding of these 20 factors, as well as a licensee`s understanding of these factors, will contribute for a long time to keeping the mental health profession in a straight and narrow line. By right to dismissal, we mean the right of the organization to dismiss an employee according to the will of the organization.