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Employee v. Contractor Designation

Employee v. Contractor Designation

About Employee vs. Contractor Designation

Businesses and individuals with an understanding of worker classification are protecting their business and themselves from potential federal and state violations, employer vs. worker disputes, and a lengthy list of other consequences, including costly tax issues. Working with an attorney during the formation of your business, or as soon as possible after, will ensure you are classifying all current and future employees or contractors correctly. 

Our attorneys will work with you or your business to complete a thorough review of the three categories by which the Internal Revenue Service and Texas Workforce Commission will determine the designation of your worker, and thus your tax liability, as well as any additional obligations beyond tax liability. Our attorneys will review the facts regarding the workers’ statuses by assessing the aspects of each of the following categories provided by the IRS: 

    1. Behavioral Control 
    2. Financial Control 
    3. Relationship 

Each of these categories are critical for properly classifying workers, not doing so can make you or your business liable for additional taxes or obligations to your workers, often leading to disputes and costly litigation. Our attorneys will utilize all resources made available by the IRS and TWC to properly classify your employees, providing the legal relief a correct designation provides. These resources are lengthy and comprehensive, therefore assistance from an attorney will return valuable time and resources to you and your business while providing protection from future issues. 

Getting Started with Employee vs. Contractor Designation Consultation  

  1. Email with a thorough, but precise summary of your employer and worker relationship. Please list the facts affecting your employer/worker relationship and any questions you may have. Attach all relevant documents to this initial email. The contents of your initial email will remain confidential.
  2. Within 1-2 business days (often faster), you will receive a response to your email with a quote, payment link, and engagement letter for the initial consultation based on the summary of your issue and the length and complexity of the documents attached. 
  3. In no circumstance will you be charged more than your initial consultation quote unless you give written authorization to proceed with the representation. After the initial consultation, you may agree to proceed on an hourly basis, on a flat fee if available, or you may decide to end the representation. 

Please note, the information on this webpage should not be considered legal advice and is strictly for informational purposes. Any interaction with this webpage or initial correspondence with our attorneys does not qualify as providing legal advice or retaining legal representation. Legal advice is available only to clients who have an executed Engagement Agreement with Forbes Barrentine Law PLLC. Forbes Barrentine Law PLLC does not provide legal advice relating to federal or state income taxes. 


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