The Other Side of Independent Contractors

               It is no secret that the IRS has declared war on employers who treat their employees as independent contractors. Needless to say the states have the very same interest. Not only are employers relieved of the task of withholding, but they also avoid payment of employment taxes, medical and pension benefits. The obligation to file and pay taxes falls on the shoulders of the employee as an independent contractor. Those independent contractors however do have a field day with regard to the deductions they can claim on their own personal schedule C business. See#2 above. Every then and again the tables are switched. In Derolf v. Risinger Bros Transfer, District Ct, Ill, truckers who were employed to haul freight claimed that they were in fact employees and not independent contractors. They claimed their employer intentionally misclassified them. The District Court examined the facts and determined that the truckers controlled the work they did, set their own hours, and decided the routes they would drive. They were paid by the mile and most importantly they could haul freight for other carriers and could make a profit like any real business. With that the court decided they were not misclassified and were in fact independents.