| 08:51am Mar 22, 2001 PST (#1 of 6)
Does anybody know if there are any problems (legal, etc) with someone who is an employee part-time and then also contract them on a job by job basis as a freelance artist?
We are also looking for any recommendations for legal counsel for these type of labor law questions (attorney, HR Consultant, etc). We are located in the state of Washington if you should know of any names.
Thank you,
Terri Strobel Sands Costner & Associates
08:51am Mar 22, 2001 PST (#2 of 6)
check out www.HRClient.com It may be helpful-
Cherelyn Were
08:51am Mar 22, 2001 PST (#3 of 6)
Our accountant advised us that if you have employees do extra side projects on a "freelance" basis on weekends or whatever, you must treat them and pay them as employees, because you really are asking for trouble if you give someone a W-2 and 1099 in the same year.
We are members of 2nd Wind, and I seem to remember a while back that they had negotiated special rates with a law firm who knew about advertising issues. You might want to contact 2nd Wind if you're not already a member.
Good Luck!
Catherine Colangelo The Phillips Agency
08:51am Mar 22, 2001 PST (#4 of 6)
It isn't the State of Washington you'll have to worry about so much as the Feds. They're way strict on this and I'll all but guarantee you that by having them on your pay-roll (even for an hour a week) and reporting them as payroll, the Feds (and probably the State) will look at that free-lance and come after you for withholding. There is a test for what constitutes an employee and what is an independent contractor. Any number of sites on the web relating to the issue will provide that to you. But, in the meantime, I'd call your CPA and ask him/her what to do now.
Frank Merriam
08:52am Mar 22, 2001 PST (#5 of 6)
are you familiar with the IRS rules of contractors vs employee? I suppose you could support your position with proper documentation, but this is very touchy area, why risk it?
User
08:52am Mar 22, 2001 PST (#6 of 6)
The way we process freelancers is to add time to a particular task and job through timesheets. This activity is billed out at the same rate as if someone in house did the work. The freelancer's invoice is added as a NON BILLABLE job cost invoice against the same task and job. We do this to reflect the difference in actual cost and billed amounts on the job. The payable is paid as usual. After reviewing all the e-conversations, I'm unsure that our simple procedure is the right one.
Diane Elliott, Bookkeeper Deardorff Associates
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