Just a little background on why the contractor laws. 
One of the big tech firms (I forget which but want to
say it was either Microsoft or Big Blue) relied very
heavily on consultants/contractors.  They figured it
was cheaper because they didn't have to give the same
benefits as regular employees.  They had them on the
de facto payroll for an extended period of time and
worked them countless hours.

The contractors then sued and said they were having to
perform as employees without the benefits seeking to
gain them--and prevailed.  So there are some pretty
specific limits as to how long an employee can work
without being treated the same as a regular employee,
and employers would be wise to investigate lest they
wind up with a similar situation.

In the company for which I work, a contractor can now
only work for a limited period of time (1 year I
believe).  They then must leave and cannot return for
at least 6 months.  

One way we have somewhat gotten around this is by
having employee contractors.  A one-year
agreement--that can be renewed is struck between the
contractor and the company.  Instead of being third
parties working technically for someone other than the
company and being, in effect, sublet to our company,
they actually work for us.  But, they agree to take
lesser benefits.  They get some vacation time, but may
not get sick time or retirement.  It becomes rather
complicated.

I encourage each person faced with a hiring decision
to consult with their HR rep and, if they don't have
one or cannot afford one, check with their board
members to see if they can drum up someone in a
for-profit corporation to which the board member may
be tied and see if they can give some sort of pro bono
consultation.  

Employment law is very complicated.

If all else fails, you may wish to use
http://www.findlaw.com/01topics/27labor/index.html


--- Lucy Sperlin <[log in to unmask]> wrote:

> Hi John,
> 
>  
> 
> We spent a lot of time on this issue last year. 
> You'll want to seek
> information from your State also.  Here in
> California, we have rules set
> down by the Calif. Franchise Tax Board (which
> conform to Federal but may go
> further).  They have a quite elaborate set of
> criteria for allowing someone
> to be paid as a contractor, but with no single thing
> as a 'make or break'
> item. 
> 
>  
> 
> Things like where they work, whether they do the
> same service for others,
> whose equipment and supplies are used, whether they
> are expected to work
> specific hours, whether they are told how to do the
> job, and whether they
> supervise others were just some of the things that
> it rested on.  The rules
> have become quite tight to prevent the use of
> contract employees to avoid
> paying payroll taxes.  It turned out that we had one
> position that could be
> considered contract, and another that clearly could
> not.  It sounds like
> some of the jobs you'd like done could be done by
> contract -especially ones
> that are probably short-term like planning and
> reorganization, but be really
> careful.  You could call your state tax office and
> ask for a copy of their
> guidelines.
> 
>  
> 
> The problems are, as someone else pointed out,
> running afoul of State and
> IRS laws. The primary perk is not paying the
> employer's share of payroll
> taxes.  Except that those who make a living by
> contracts and have to pay
> those things themselves probably have fees which
> cover these things so you
> are paying anyway.  In which case the only remaining
> perk is to not have to
> set up all the payroll tax paperwork, though if you
> are already set up to
> pay other employees that's probably not a big deal.
> 
>  
> 
> Lucy Sperlin (Skjelstad)   - a voice from your past.
> 
>  
> 
> Butte County Historical Society
> 
> Oroville, Ca
> 
>  
> 
>  
> 
>   _____  
> 
> From: Museum discussion list
> [mailto:[log in to unmask]] On Behalf
> Of John Martinson
> Sent: Monday, January 14, 2008 6:04 AM
> To: [log in to unmask]
> Subject: Consultants
> 
>  
> 
> 
> Has anyone in their museums used a consultant for
> planning, reorganization,
> events, fundraising, conservation, etc.?   Or have
> you used a consultant
> to serve as "temporary" employees to do a specific
> (fix the problem type)
> job instead of hiring a full time public relations,
> event planner, and so
> forth?  
> What are the common fees for such services?  And the
> "big" question -- 
> was there any major problems or perks for
> association with such services?  
> Thanks in advance.
>  
> John
> Boise, ID
> 
>
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