Independent Contracting

[schrabob]

I am a Design Engineer who has been unemployed for the last 5 months. I recently have been offered temporary assignment for 4-6 months and looking forward to getting back to work. They want to pay me as an independent contractor and work at their office using their equipment.

Should I have any concerns with this scenario? I have always either worked direct or through a job shop.

Thanks!

 

[byrdj]

I had a similair offer. The customer assisted by listing all the requirements I needed to become an approved vendor/contractor.

I had to incorperated and obtain required insurance. Since the customer aproached me to become a contractor, I was able to negotiate on liability and insurance.

The kind of bad thing was I lost unemplyment when I became owner of a corperation.

 

[schrabob]

Unemployment is one of my concerns. Currently I am eligible for 50 additional weeks of unemployment. I want to make sure that unemployment will be there for me if I am once again without work at the end of the 4 month contract.

 

[MacGyverS2000]

I'm an LLC and it has zero effect on unemployment... YMMV.

Dan - Owner

http://www.Hi-TecDesigns.com

 

[Ron]

schrabob...either get prof. liability insurance or have the employer indemnify you for all actions, negligent or otherwise.

Make sure your contract places all the liability on them, not you.

 

[diarmud]

If your concerned about unemployment, call or talk to the local unemployment office.

I believe owners are in most cases ineligible for unemployment in the US (I know of two cases where owners were deined unemployment), BUT I could be wrong.

Good luck.

 

[TheTick]

In the U.S., the situation you describe is a bit dodgy. The IRS has gotten much stricter about this exact sort of thing. They have a questionnaire that helps clarify your status.