- 13 - enjoyed a fair degree of permanency. Additionally, there was no evidence that these individuals enjoyed the opportunity for profit or loss beyond the work performed for, and hourly wage paid by, petitioner. Finally, while Carmel testified that some of the workers provided their own tools, including hammers and in some cases Skil-saws, many of the materials needed for the work, including the concrete, were provided by petitioner. These factors all suggest to the Court that the individuals were in fact employees of petitioner and not independent contractors. In contrast, the only evidence before the Court to support a finding that the workers were independent contractors is petitioner’s intent to create such a relationship. The contract Carmel and Damigos signed to form petitioner included a provision for the preparation of independent contractor agreements. While evidence of the parties’ understanding of the relationship is one factor we consider, it is not enough to overcome the weight of the other factors which clearly evidence an employer-employee relationship. See, e.g., Kumpel v. Commissioner, T.C. Memo. 2003-265 (“Where, as here, common law factors compel a finding that an employer-employee relationship exists, the parties’ intentions to the contrary will not be given effect.”).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011