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How to structure this employee?

I am trying to figure out how to structure this employee that is also an independent contractor. So during Monday to Friday they are a regular employee but on the weekends they do marketing for a department in the evening and are an independent contractor? How do you structure this on the payroll system does everything need to be separated?

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Answer

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    Maria F
    5 Answers
    This answer is edited.

    Generally, individuals that work as employees cannot also work for you as independent contractors. A business can have both employees and independent contractors, but they are typically different individuals.

    Does the individual do work for a separate business on the weekends as an independent contractor, then work for another business during the week?

    To help guide you in your decision making as to whether this person should be hired as an employee or an independent contractor, these rules from the IRS, commonly referred to as the IRS’s three “Common Law Rules” can help.

    1. Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
    2. Financial: Are the business aspects of the worker’s job controlled by the payer (these include things like how the worker is paid, whether expenses are reimbursed, who provides needed equipment/supplies, etc.)
    3. Type of Relationship: Are there written contracts or employee type benefits (i.e. pensions, insurance, 401(k) offering, etc.) Will the relationship continue and is the work performed a key aspect of the business?

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