Masonry Workers held to be Employees, not Independent Contractors

Applying the common law employee test, the tax court held that masonry workers were employees, and not independent contractors for purposes of federal income tax, FICA and FUTA withholding.  The tax court noted the degree of control was sufficient to indicate an employer / employee relationship.  The workers were paid an hourly wage, were employed at-will, and did not have profit or loss possibilities based on timely performance or quality of work.  Because of increasing scrutiny of the employer / employee relationship, to obtain relief from misclassification of independent contractors, taxpayers are advised to be current on all tax filing obligations, with care paid to the 1099 reporting responsibilities.

See Atlantic Coast Masonry, Inc. v. Commissioner T.C. Memo 2012-233