- 98 -
nature of his duties", or to "determine the contractor to be
used" to carry out Machise's business.
To the contrary, Machise continued to act through its owner
employees, Bucci and Ingemi, and, after Ingemi's death, Bucci
alone. Bucci and Ingemi, and not the partnerships, made the work
assignments to the employees and independent contractors. Bucci
and Ingemi directed and controlled the employees. Bucci and
Ingemi determined the amount of wages to be paid, did the hiring
and firing, took any necessary disciplinary action, and set the
hours to be worked. Machise, and not the partnerships, provided
work space and equipment to the workers. Cf. Professional &
Executive Leasing, Inc. v. Commissioner, 89 T.C. 225, 232 (1987),
affd. 862 F.2d 751 (9th Cir. 1988).
Dr. Willey, supra at 6, also lists a number of employer
functions usually taken over by an employee leasing company.
These functions include issuing paychecks, payroll management,
paid leave management, payroll tax deposits, recruitment,
enrollment in benefits, maintenance of employee benefits, and
benefit claims administration. Here, there is no showing that
the partnerships actually performed any of these functions.
Machise continued to perform the services usually provided by
employee leasing companies. The partnerships’ participation was
limited to the use of their names on checks, forms, or
transmittal documents.
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