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is an integral part of your business and “part of the process” for which you are in business. (2) “Whether the worker’s managerial skills affect his or her opportunity for profit and loss.” This seems to be tied to whether the person’s right to make decisions can contribute to their ability to make a profit. (3) “The relative investments in facilities and equipment by the worker and the employer.” While many of our dealers require their installers and service techs to furnish at least some of their tools, at what point does it qualify as a significant investment. For example, does the duct installer furnish their own truck? Does the service tech furnish their own recovery unit? (4) “The worker’s skill and initiative.” Another hard one. Does the worker exercise what might be classified as a business decision? Within this is the question of whether or not the worker is free to also solicit business from others. It is very similar to the next one. (5) “The permanency of the worker’s relationship with the employer.” This seems pretty clear. If the worker is not tied to the employer and required to report to the employer’s place of business every business day, then they might not be an employee. However, laying workers off during normal slow seasons would not automatically qualify them as an independent contractor. (6) “The nature and degree of control by the employer.” This is difficult because every dealer wants his subs to show up when the job needs to be done; however, they would not exercise control over the independent worker /sub when there is no work for which the sub has

been contracted. Again, the employee would not be free to come and go at will nor would they be allowed to work for another dealer. A sub accepts work or refuses work based on their own schedule but would be expected to show up and get the job done when it is needed by the contractor. It is the opinion of this writer that if a dealer wants to have a sub-contract relationship with what was an employee, they should have a written contract with the independent worker that spells out the sub contract relationship which includes detailed b. social security taxes c. unemployment taxes d. health insurance e. workers compensation insurance f. general liability insurance g. vehicle usage h. vehicle insurance i. compliance with federal non- discriminatory laws i. equipment furnished by employee j. equipment furnished by contractor k. non-exclusivity of contract employment. Even with this list of 11, it may not be enough. The NewsMagazine is not an authority on this matter and you should definitely consult your accountant and attorney. Yes, there may be advantages in using sub-contractors but only if all the I’s are dotted and T’s crossed. When the labor boys come a calling, the benefits go screaming if all the paperwork is not done. Yes, it is true that the federal labor boys responsibilities for a. income taxes