Interesting thread...
Setting aside the ethics of your magnanimous approach to providing jobs,
you should pay attention to the many cautions and do your research on the
use of "contracted staff" vs employees. The red flag here is that your HR
department has concerns.

Microsoft case:
http://corporate.findlaw.com/human-resources/vizcaino-v-microsoft-raises-the-stakes-on-worker-classification.html
IRS.GOV
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-(Self-Employed)-or-Employee%3F

For profit vs not-for-profit are forms of incorporation that factor into
how taxes are calculated. 501c3 designates an entity existing for the
public good and therfore able to receive donations. An employee is someone
whose time, place and work product you control... no matter your corporate
or tax status.

Regards, Paul Stromdahl


On Tue, Mar 19, 2013 at 3:15 PM, Jessica Carter <[log in to unmask]> wrote:

> Hi,
>
> Working in benefits consulting and formerly working at museums, I will say
> you want to be extremely careful about the distinction between contracted
> employees and W-2 employees.  Contracted (also known as 1099) employees are
> usually hired for set periods of time to work on specific projects and
> generally aren't considered part of the permanent workforce.  W-2 (or
> regular employees) are considered part of the permanent workforce.
>
> If you are talking about hiring permanent contracted employees, I would
> strongly recommend consulting a labor attorney, as Microsoft (and other
> companies) got into *huge* trouble with this about 10 years ago.  They
> ended up having to pay all of the back pay and taxes (and they ended up
> going back for several years involving many employees, so the monies were
> not insignificant).  The DOL regularly audits for this, and there are
> penalties as well as back pay and taxes involved.
>
> For classifying employees, you will need to look at their specific role in
> the company, the hours they are expected to work, who directs their
> workload and how they are managed.  Basically, if they are treated as a
> regular employee, the DOL will view them as a regular employee, regardless
> of how you classify them.
>
> As far as I know, the rules are not different for non-profits.
>
> I work with clients on benefits, and all of them are dealing with the same
> issues regarding health care reform your museum is.  If you have questions
> on specific strategies regarding the costs and benefits of health care
> reform, please feel free to contact me off-list.
>
> Warm regards,
> Jessica Carter
>
> [log in to unmask]
>
>    *From:* Thomas Close <[log in to unmask]>
> *To:* [log in to unmask]
> *Sent:* Tuesday, March 19, 2013 11:59 AM
> *Subject:* [MUSEUM-L] Contract Staff/Educators
>
>  Hi everyone,
> The museum I work at is growing rapidly. As the new healthcare legislation
> starts to set in, we're interested in hiring *contracted* full-time,
> non-benefited educators and other staff. However, our HR department (coming
> from a for-profit, corporate background) is hesitant to do so without more
> information on the topic. Although I'd love for everyone to receive
> benefits, I know we have many more people who'd simply prefer to have
> full-time hours instead of part-time.
> Can anyone point me in the direction of resources/research related to this
> topic?
> In an effort to gather information and convince them that other museums &
> non-profits are hiring this way, my director has created the following
> survey. I'd be very appreciative if you all could take a few moments to
> fill it out.
>
> https://www.surveymonkey.com/s/D7J39XN
>  Best,
>
> Thomas Close
> Gallery Experience Manager
> Perot Museum of Nature and Science
>
>
>
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-- 
Norman *Paul* Stromdahl
Curator, Chief of Exhibits
Illinois State Museum; this place rocks!

217 558 3845 (W)
206 251 6354 (M)

http://www.linkedin.com/in/npscreates



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