Your technicians are a vital part of your pest control operation, so why place a label on them? Carefully identifying whether your technicians are considered independent contractors or full-time employees is actually much more important than you may realize for a variety of legal factors.
Health care reform requires applicable employers (ALE) to report to their employees and the IRS whether they offer their full-time employees (and those employees’ dependents) the opportunity to enroll in coverage under an employer-sponsored plan. It’s important to know that this now includes any independent contractors who may be considered full-time employees. ALE-subject businesses must carefully track a broad range of information on a monthly basis for every employee.
On one hand, your independent contractor technicians may still qualify as full-time employees for purposes of health care reform compliance. On the other hand, employers are not required to carry workers’ compensation coverage for their independent contractors, which is another vital reason to classify the employment status correctly.
By Gary Shapiro, Senior Vice President of Weisburger Insurance Brokerage