Full question:
A Spanish company hires me in the USA (I am a USA citizen) and tells me that all taxes etc are my responsibility. I file 2007 taxes as independent contractor. They control all facets of my work and want me only working for them. In 2007 they also incorporate in the States and reneged on promise that I would become full time employee in 2008 of USA Inc company. They maintain me in 2008 as before under salary directly paid to bank account from Spain. Can their USA Corp. claim I never worked for them in order to circumvent tax laws and issues. USA Inc. on acts for receivables and invoices. 1. Can Spain company hire USA employee and knowing violate tenants of independent contractor status. Are they responsible to withhold. 2. Now Inc in USA ; can Spain company still claim I only work for Spain and not USA company. 3. Although I am full time employee of Spain they treated me on their books as vendor also skirting their Spain tax issues.
- Category: Taxes
- Date:
- State: National
Answer:
I cannot provide a legal opinion, but I can outline some relevant considerations. Whether you are classified as an employee or an independent contractor depends on various factors. Generally, the more control an employer has over how you perform your work, the more likely you are to be considered an employee.
Key factors include:
- Written contracts that describe your relationship.
- Provision of employee-type benefits, such as insurance or vacation pay.
- The significance of your services to the business's regular operations.
- The permanence of your working relationship.
If you believe you are an employee, you can request a determination from the IRS by submitting Form SS-8 (PDF), which assesses worker status for tax purposes.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.