Collaborate on Independent Contractor Invoice for Non-profit Organizations with Ease Using airSlate SignNow

Independent contractor invoice for non-profit organizations

so i personally use just works they've been amazing uh from my company i often recommend them to my non-profit organizations and i asked them to come on to talk a little bit more about the hr missteps that a non-profit might take and there's some common areas moses that we often come across and i want to dive right into those so if you don't mind let's just start right from the get-go talk to us a little bit about the difference between an employee and an independent contractor i know that's a very um gray area for some people but then also because i'm saying this because a lot of small nonprofits pay their founders or executive directors as an independent contractor or they just don't know how to set up payroll so they just pay everybody as a 1099. so we just kind of want to address that first foundational question right away great thanks tasha yeah i'd love to jump in and thank you so much for having me i'll do my best to cover the employee burst independent contractor classification in just a few minutes when it comes to executive directors and some of the things you described i'll tell you right off the bat that is probably barking up the wrong tree anyone who performs compensable labor for the business who has suffered or permit to work is going to be considered an employee not now let me get a little bit more into what that means under department of labor regulations so there's actually a number of tests to decide whether someone's an employee or independent contractor which contributes a little bit to the confusion i think there's one under the department of labor there's one under the irs many states have their own tests as well and organizations are obligated to meet all of the ones that apply to them before they move forward confidently um so one of the fundamental distinctions is the degree of control over the worker such as whether the worker is compelled to work a set schedule whether they use company equipment and then what's called the economic reality test of whether they're in business uh he or she is in business for him or herself so freelancers and contractors are best thought of more as vendors or service providers they're offering a product or specialized service if someone is at your beck and call during a set of working hours for whatever you assign them to on an hour-to-hour basis they're probably going to be correctly classified as an employee absolutely good so let me ask you another question that comes up oftentimes but before i move on i want to i want to say again legal disclaimers here that we're not we're not attorneys right um i usually recommend to my clients it's always most conservative to classify people as an employee would you agree that or no absolutely 100 percent agree um it's much safer to do so to follow the flsa fair labor standards act requirements for minimum wage for overtime compensation as well as state and local laws to the same so almost always safer to make someone an employee yes yes so a lot of times there's many listeners out there that listen to us that are kind of they're the only person they're a founder their ceo and once you start drawing compensation i always advise them go ahead and set yourself up on payroll whether it's working with a peo like just works or another you know dot-com simple payroll solution generally they can walk you through the process if it's intimidating intimidation and overwhelm is not a good excuse for the department of labor are the irs uh as confusing as it can be so i wanted to throw that in there for anybody that's in question like um this one don't really know generally it's more conservative just to follow all of the rules you