Issue link: https://www.massageandbodyworkdigital.com/i/70551
contractor shouldn't be required to be on the job with no pay, whether that's sitting and waiting for an appointment to walk in the door, or doing desk duty and other chores. That is a blatant violation of the contractual relationship. Unfortunately, that doesn't deter many employers from requiring these tasks, and many contractors go along with it because they think any job is better than no job. In addition to the IRS, the Small Business Administration (SBA) has advice governing worker status.2 According to the SBA, an employee is given training for the work to be done, works for only one employer (although that particular part isn't necessarily true), and performs duties that are controlled by others. An independent contractor, on the other hand, maintains a separate checking account for her business, has a business name, provides her own tools, sets her own hours, has more than one client, and keeps her own business records. While not every contractor may follow all of these rules, adherence to the majority should be the case. Independent contractors may also have other contractors working for them. One example would be an independent contractor who performs corporate chair massage and contracts with other therapists to handle some accounts during busy times. DOCUMENTATION If you're the employer, the burden is on you to provide proof of the circumstances under which you are employing people. Employers should bear in mind that if they are found to be incorrectly classifying workers, the employer, not the worker, is the one who is going to be liable for the back taxes and any penalties incurred as a result of the misclassification, intentional or not. It's very important not to misuse your independent contractors by treating them as employees. If you're the worker, documentation is just as important for you. As an independent contractor—a self-employed person—you're entitled to a lot of tax deductions, the same as any other business owner. Save the receipts for all your business-related expenses. You may use a financial software program or financial journal, but documentation is always the key in proving your deductions are legitimate, should you ever be audited. It's a fact that small business owners are audited more frequently than major corporations, particularly in businesses where people traditionally receive a lot of their money as cash payments and are perhaps receiving gratuities as well. It's illegal to fail to report gratuities as income, and not only that, it's plain unwise. If you're injured in an accident resulting from the fault or negligence of another party, and have to be involved in a personal-injury lawsuit, the court would use your annual income to help determine the compensation you are entitled to. If you have received an average of $5,000 a year in gratuities but haven't reported that, you can't expect to receive it as compensation in a settlement. NONCOMPETE AGREEMENTS Noncompete agreements are one of the most frequently discussed, and complained about, topics on my social networks. 28 massage & bodywork july/august 2012