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State Offers Help on Contract Work Classifications

Press Enterprise (California) (04/03/12) Jack Katzanek

A new worksheet issued by the California Employee Development Department aims to assist employers in categorizing employees as contract or full-time workers. The worksheet is a response to a move by many companies to reduce the number of permanent workers because of the recession, creating a “project-specific workplace” in which temporary employees are taken on for several months to complete a project. However, many employers do not meet the definition of independent contractor, and they must understand the paperwork requirements for compensating contractors. A questionnaire in the worksheet focuses on the level of supervision, and employers should know that contractors actually become employees when they must do things the company’s way.