Re: [Iasa20] employees and contractors in 6635bis

"John Levine" <johnl@taugh.com> Tue, 30 April 2019 22:49 UTC

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From: John Levine <johnl@taugh.com>
To: iasa20@ietf.org
Cc: stephen.farrell@cs.tcd.ie
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Subject: Re: [Iasa20] employees and contractors in 6635bis
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In article <3e8222ce-45dd-41c2-71cd-1adf99760238@cs.tcd.ie> you write:
>ISTM that the fixed-term with re-appointment model for
>the RSE role inherently means not filling that role by
>hiring an LLC employee.
>
>Where am I wrong in the above?

It depends where the employee is.  

Here in the US, if you hire a person as a contractor but the the
nature of the job is more like an employee (the so called IRS 20
questions), the person can file an SS-8 form with the IRS to ask to be
reclassified as an employee.  If the IRS agrees, the employer has to
pay unemployment and social security and medicare taxes for the
employee, retroactive to when they were hired.  It can be a
significant financial risk for the employer.

This is yet another reason why it's absurd to try to micromanage this
stuff from afar.  Give the LLC board some credit for not being total
incompetents and let them have the flexibility to do their job.