In A Special Touch v. Commonwealth of Pa., No. 30 MAP 2019 (Pa. Supreme Ct. April 22, 2020), the Pennsylvania Supreme Court ruled that the employer must prove that the person generally works in an independently established profession, profession, profession or business so that an employer can prove that he or she is an independent contractor and not a worker. An employer can do this by showing that the person provides the same services to others, with the exception of the employer. It is not enough to show that the individual is able to provide services to others, for example by demonstrating that the person is not subject to a non-competition agreement. In order to show that a person in the construction industry is usually self-employed, professional, professional or professional, Act 72 requires that: according to the Pennsylvania courts, the employment relationship is defined by the employer`s control over how the work is done. On the other hand, the independent contractor retains control over how it is to do its job.
This distinction exists regardless of how the employer titulates the person concerned, how they are paid, and whether or not income tax or social security is taxed. Many employers can save money by paying a slightly higher salary to an independent contractor than a worker. The independent contractor must also run an independent business, i.e. they have the tools to do the work, to make profits or losses from the exercise of the services, that they own their own place of activity and that they have in the past provided the same services or services similar to another company. Pennsylvania also requires independent contractors to take out at least $50,000 in liability insurance. Keep in mind that it is up to the employer to demonstrate that any person qualified as an independent contractor does meet the requirements to be classified. Otherwise, this could result in significant arrears of taxes and penalties under the Unemployment Damages Act in Pennsylvania. Please remember that different criteria may be required to qualify someone as an independent contractor under federal tax laws, the Fair Labor Standards Act and the Pennsylvania Workers` Compensation Law. If your business is built, pennsylvaniaes Construction Workplace Misclassification Act has additional requirements to determine that a person is an independent contractor, including that the company and contractor must have a written contract with certain specifications. Using these factors in A Special Touch, which involved nail technicians and cleaners in a beauty salon, the court found that most people work for others, but that this work took place in different areas.