Fill and Sign the Chapter 23 Employment Tax Internal Revenue Service Form

MEMO: USING INDEPENDENT CONTRACTORS To: Hiring ManagerDate: Dear Manager:As you know, the IRS takes a strict view of independent contractor arrangements. Generally, the relationship of employer and employee exists when the employer has the right to control and direct the individual who performs the services, not only as to the results, but also to the details and means by which that result is accomplished. The following is a brief list of factors the IRS would use to determine whether an employer/employee relationship exists, rather than an independent contractor relationship. •Work performed on the employer’s premises, which might indicate control, especially when the work could be done elsewhere.•The establishment of set hours of work by the employer.•The furnishing of tools or materials by the employer.•The existence of a continuing relationship.•Payment by the employer of the worker’s business and travel expenses. Independent contractors should meet the following criteria. •They ordinarily use their own methods and receive no training from the purchaser of services.•They have made a significant investment in facilities and perform services for another.•They are in a position to realize a profit or suffer a loss as a result of their services.•Their services are available to the general public.•They are usually responsible to complete a specific job or are legally obligated to make good for failure to complete the job. If there is any question in your mind about the contracting relationship, please check with Human Resources.