Can we legally classify the telemarketers we want to hire as independent contractors? 6 Answers as of February 27, 2014

We have a short term need for telemarketers, 8 weeks. If we were to have them rent their cubicle space from us, we did not dictate their work hours, and we paid them based on performance, could we legally classify them as independent contractors?

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WILLIAM L SANDERS, ATTORNEY AT LAW | William L. Sanders
This likely is not legal. You may apply to IRS for advance permission to do this. If you are wrong, and proceed, the penalties are substantial. You should also look at the unemployment taxes. You likely are liable for UI taxes, and they would be eligible for benefits when the job ends. The fact that you hired them as temp workers, for a limited duration, is of no consequences in UI world. They are unemployed due to lack of work, and therefore eligible. If you do not pay UI taxes, you likely will be busted when they apply for UI.
Answer Applies to: Georgia
Replied: 2/27/2014
KEYL ADR Services, LLC | Mark D. Keyl
You can not exercise any control over them, including what they say. If you just give them leads and they contact independently, it could work.
Answer Applies to: Mississippi
Replied: 2/27/2014
Barton Barton & Plotkin
Barton Barton & Plotkin | Maurice Ross
No way. You will get in major trouble with the tax authorities if you try this.
Answer Applies to: New York
Replied: 2/27/2014
Law Office of Richard Winkler | Richard Winkler
You would be providing them with the tools of their trade. You would be dictating their hours, even though you say otherwise. Probably not good enough to qualify as an IC.
Answer Applies to: Rhode Island
Replied: 2/27/2014
Law Offices of Linda Rose Fessler | Linda Fessler
It sounds as if that will work. Be sure to have them sign an agreement.
Answer Applies to: California
Replied: 2/27/2014
    Peters Law, PLLC
    Peters Law, PLLC | Mark T. Peters, Sr.
    Probably not. Your better bet is to go to a temp agency and have them hire the people. Sure, it may be a little more costly, but it will save you a lot if just one of them figures out he or she is an employee and gets the IRS and the states department of labor involved.
    Answer Applies to: Idaho
    Replied: 2/27/2014
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