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Employment Law/Becoming an Independant Contractor

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Question
I owned my own small children's art studio in a previous state. Upon moving here I was offered an opportunity to purchase an established children's art studio. The owner has no idea how to arrange for the purchase and does not want to involve a lawyer. I would have to slowly acquire the business overtime anyway. I suggested she hire me as an independent contractor to run her business for her. However in some of the research I've done it states that I would have to run my own independent business to qualify to be a 1099 employee. Could you clarify what the laws would be to do something like this? Could I run her business under the established business name as an independent contractor or would I have to change the name? Thank you very much for your time.

Answer
File for an EIN number for your business as Kari (last name) consulting services. Now you are a consultant running your own business.

Instead of haveing a check written out in payroll invoice the person the amount of money that you would receive as an independent contracter under Kari (last name)  Consulting.

Set up a checking account at a credit union or bank under Kari (last name) consulting and deposit your checks there.

You are now a business.

If you set up a room in your house as an office you can take off part of your internet fees, phone bill, power bill, and maybe rent or mortgage payment as small business deductions. You can also amortize a computer and take it off.

Shirley

Employment Law

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Shirley McAllister, CPP, PHR

Expertise

I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).

Experience

30 years in Payroll and Human Resources

Organizations
SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association) CPA (Canadian Payroll Association) NAPW (National Association of Professional Women) The Mentoring Network

Education/Credentials
PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

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