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lunch break. Petitioner reported her time and attendance to Mr.
Urman biweekly. This factor supports respondent.
9. Social Security Taxes
Another factor courts have considered in determining the
status of workers is whether there was a withholding of taxes and
payment into worker’s compensation and unemployment insurance
funds. Profl. & Executive Leasing, Inc. v. Commissioner, 862
F.2d 751, 753 (9th Cir. 1988).
The personal service contracts required the State Department
to withhold two parts of Social Security (old age/survivors
disability insurance and Medicare) and Federal and State income
taxes from petitioner’s wages. The contracts required The State
Department to “make the employer’s contribution toward the two
parts of Social Security in behalf of Contractor”. (Emphasis
added.) That language is appropriate where services are
performed for the Government by an employee of a contractor (here
a small, woman-owned business), and the Government agrees to pay
the contractor-employer’s contribution for the two parts of
Social Security. The provision is consistent with treating
petitioner as an employee of her own business, as well as
treating her as a State Department employee. This factor is
neutral.
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