Temp agencies & Indies

June,

My wife was offered a part-time position as secretary under a 1099 contract for a loan officer (mortgage broker). Wanting to maximize our tax opportunities, we purchased your book, (Self-Employed Tax Solutions). I read your section on "What determines Employee or Self-employed Status?..." Under the 'control versus independence" guidelines of the IRS, this is most like to be considered an 'employee' position and not 'self-employed'.

My question is, how do temporary staffing agencies conduct business under these guidelines? What makes the temporary staffing agency different then a self-employed person performing the same task?

Thanks, Chris from Pflugerville, TX

P.S. This book is the best. A must for anyone even thinking of starting their own business.


Thanks, Chris, for your generous comment about my book. Please tell all your indie friends!

The temporary staffing agency is not playing by the rules. They get away with it because no one reports them. Legitimate, well-known temp agencies pay the workers as employees of the temp agency. Note that the worker is not paid as an employee of the company where he or she is temporarily working.

If you want to set everybody straight, you can call your county or state department of labor.

Best,
June

PS on Monday 7/30.
I contacted Kelly Services , one of the oldest and largest temp agencies I know of. They confirmed by email that "The worker would be an employee of Kelly. They get paid by Kelly."

PS on Wednesday, 8/1.
AQUENT gave a similar response and said that if you have more questions on this kind of arrangement to contact an Aquent agent at 877-2-AQUENT.