The Indiana Supreme Court recently accepted that a company correctly classified a worker as an independent contractor who is not entitled to unemployment benefits in Indiana. Q.D.-A., Inc. vs. Indiana Department of Workforce Development, Supreme Court Case No. 19S-EX-43 (January 23, 2019). This ruling is important because Indiana sets a high bar for who can be an independent contractor. Independent Contractor – If you are a contractor, you are responsible for your own autonomy taxes, which must be paid quarterly. It is important to remember that different laws apply different tests to find out who can be an independent contractor. According to the law in question, misclassification of a worker can lead to taxes, overtime, interest, penalties and liability under different labor laws. The responsibility often goes back years. The law defines a worker as a self-employed contractor when he/she fulfills IRS guidelines (see citariat of the law above in section 2). Senate Enrolled Act 576 provides that all independent contractors, not just those in the construction industry, can now obtain a “safety certificate”. As a business owner, you must report any employee and independent contractor you have on hand.

You also need to make sure that you have classified them correctly. The Ministry of Labour is very strict in the difference between an independent contractor and an employee. Indeed, they have severely repressed entire sectors that try to wrongly classify employees as independent contractors. You also have an obligation to pay overtime to employees for every hour of more than 40 hours in a given week. Overtime is 1.5 times your normal hourly rate. This is another reason why employers try to classify their workers as independent contractors. That is, they are trying to avoid the overtime requirements of the Fair Labor Standards Act. U.S. Legal Forms™, Inc. of Indiana provides employment forms and contract forms for all your employment needs, including employment contracts, instructions, communications, and disclaimers, as well as many different contracts for employment matters. Many free forms are not valid.

We provide lawyers and you with the correct valid form. Free previews available. All forms are available in Word format. The department decided that the driver was an employee who was entitled to unemployment benefits in Indiana. An administrative judge agreed. The Indiana Court of Appeals ruled in favor of Q.D.-A, Inc. The department appealed to the Indiana Supreme Court, which ruled the driver for an independent contractor. The FLSA calls for an approach to “economic reality” to determine whether an employee is an employee or an independent contractor.

The question is whether the worker is economically dependent on the company. Although the entire relationship is taken into account, the valuations are as follows: this contribution applies to any company that employs independent contractors in Indiana. Employer – As an employer, the distinction is very important because you have to pay taxes, Social Security, and insurance on behalf of your employee and provide them with a W-2 form at the end of each year. . . .