LMCP_Hall Association

Distinguishing Between Vendors and Employees

There may be instances when it’s difficult to tell whether an individual who performs work for a hall is most accurately classified as an employee or as an independent contractor/vendor. This classification can be particularly tricky when the worker is not employed by a separate company but is working directly for the hall. Your hall should be mindful that state courts and employment and taxing agencies often determine that such workers should be classified as employees. This classification is important because: ▪ Employees have many protections that vendors do not. ▪ Corporations have many more obligations (including tax withholding) with respect to employees that they do not have when engaging vendors.

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