Are Your Stable Workers “Independent Contractors”?
Some stables, in an attempt to save money, label their workers “independent contractors” instead of “employees.” Be careful – this could be trouble waiting to happen.
“Employees” and “independent contractors” are very different. “Employers” control and direct their “employees” as to important details of how, when, and where the work must be done.
“Independent contractors,” by comparison, carry on an independent business and contract to do particular jobs or tasks. Those hiring independent contractors can explain the end result they want but typically cannot control or instruct the worker on how to do the job. Farriers are good examples of independent contractors since they use their own tools, serve different customers, set their own work schedules, and have the “know-how” to do the work independently.
Just because you have labeled your worker an “independent contractor” does not mean courts or the IRS will agree. Employers that wrongly call their workers “independent contractors” risk serious consequences, even for well-intentioned mistakes. For example, the IRS could impose harsh financial penalties. If the worker is injured and sues the employer claiming to be an “employee,” a court could likewise impose harsh penalties on the business.
How the IRS Evaluates the Issue
Visit the IRS website (www.irs.gov) for more information.
How to Protect Yourself
Equine industry employers can seek to protect themselves in a few ways, including:
- IRS Forms. The IRS website provides and explains forms such as Form W-9 (Request for Taxpayer Identification Number and Certification) and Form 1099-MISC (Miscellaneous Income).
- Seek advice. Seek help from a lawyer or accountant. Consider asking the IRS to make the determination by submitting a Form SS-8 (“Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding”).
- Confirm the Status. Consider using a carefully worded contract that, among other things, confirms the status and that the contractor accepts responsibility for obligations such as liability insurance, self-employment taxes, health insurance, and withholdings.
Julie Fershtman is considered to be one of the nation's leading attorneys in the field of equine law. A frequent author and speaker on legal issues, she has written over 400 published articles, three books, and has lectured at seminars, conventions, and conferences in 29 states on issues involving law, liability, risk management, and insurance. For more information, please also visit www.fershtmanlaw.com and www.equinelaw.net, and www.equinelaw.info.View All Posts by Author ›
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Julie Fershtman, author of our popular and prolific Equine Law Blog, was interviewed by the State Bar of Michigan. The interview, which called Fershtman "Lawyer-Blogger," discussed our Equine Law Blog. We truly believe that this blog is the nation's most active blog serving the equine industry on equine law topics, and we thank you for visiting it. Read more here.
Honors & Recognitions
Equine lawyer, Julie Fershtman, has received these prestigious equine industry awards from respected equine organizations:
"Excellence in the Advancement of Animal Law Award" - American Bar Association Tort Trial & Insurance Law Section Animal Law Committee
"Distinguished Service Award" - American Youth Horse Council
"Industry Service Award" - Michigan Equine Partnership
"Catalyst Award"- Michigan Horse Council
"Outstanding Achievement Award" - American Riding Instructors Association
"Partner in Safety Award" - American Riding Instructors Association
"Associate Service Award" - United Professional Horseman's Association
"National Partnership in Safety" Award" - Certified Horsemanship Association
What our Equine Law Services can Provide
Handling breach of contract, fraud/ misrepresentation, commercial code, and other claims involving equine-related transactions including purchases/sales, leases, mare leases/foal transfers, and partnerships.
Litigating disputes in court or through alternative dispute resolution (arbitration, mediation, facilitation).
Defending equine/farm/equestrian industry professionals, businesses, and associations in personal injury claims and lawsuits.
Drafting and negotiating contracts for boarding, training, sales, waivers/releases, leases, and numerous other equine-related transactions.
Representing and advising insurers on coverage and policy language as well as litigation;
Advising equine industry clubs and associations regarding management, rules, bylaws, disputes, and regulations.
Representing some of the equine industry's top trainers, competitors, stables, and associations.
Counseling industry professionals, stable managers, and individual horse owners.
THE NATION'S MOST SOUGHT-AFTER EQUINE LAW SPEAKER
Did you know Julie Fershtman has spoken at the American Horse Council Annual Meeting, Equine Affaire, Midwest Horse Fair, Equitana USA, US Dressage Federation Annual Meeting, North American Riding for the Handicapped (now PATH International) Annual Meeting, American Morgan Horse Association Annual Meeting, American Paint Horse Association Annual Meeting, US Pony Clubs, Inc.'s Annual Meeting, All-American Quarter Horse Congress, American Youth Horse Council Annual Meeting, American Riding Instructors Association Annual Meeting, CHA Annual Meeting, and numerous others? Consider signing her up for your convention. Contact Julie.
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