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right to discharge an independent contractor. Thus, this element
appears to be of little significance in the instant case.
F. Integral Part of Business
TAG is in the business of wholesale distribution of domestic
and imported men's clothing. TAG's sales representatives are
TAG's key connection with its customers. This factor would
support a finding that Hathaway was an employee of TAG.
G. Relationship TAG and Hathaway Believed They Had Created
Hathaway and Arthur Penn, who had been a TAG sales
representative for 29 years and TAG's national sales manager and
senior vice president for 3 years, testified that as sales
representatives for TAG, they considered themselves independent
contractors, not employees of TAG. Hathaway’s testimony,
however, is contradicted by the fact that petitioners initially
reported most of Hathaway’s business expenses on Schedule A.
A letter dated March 1, 1990, written by TAG's controller,
Theresa Hinton, indicates that she was told by Rita Shumate, head
of TAG's auditing department, that Hathaway was an employee.
However, a letter dated March 21, 1990, also written by Theresa
Hinton, indicates that for the first quarter of 1987, TAG
considered Hathaway an "independent agent". TAG issued to
Hathaway Forms W-2 and withheld Federal income taxes and F.I.C.A.
taxes from his commissions. The withholding of subtitle C taxes
by TAG on behalf of Hathaway is consistent with a finding that
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