RE: taking on a subcontractor

Subject: RE: taking on a subcontractor
From: "Stephen Arrants" <steve -at- microbrightfield -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Fri, 14 May 2004 13:58:01 -0400


Michele Davis writes:
> Sounds like things suck much in Cali. I own an S-Corp. but do
> not provide liability insurance, ever. Every customer I have
> knows I don't provide it and that doesn't mean that I am
> perceived as an employee of their company. I am confused, is
> there some Cali. or national law that states someone is not
> considered a subcontractor is they don't provide liability insurance?

>From my dealings with the California EDD, being paid on a 1099 basis
automatically disqualifies you for Unemployment Insurance coverage. If
you work on a 1099-basis, you cannot use that job as a qualifying
employer for collecting unemployment insurance. (Though, if you were
paid W2 prior to contracting on 1099-basis, you could use your prior
employment to qualify.)




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