New Jersey Letter from Department of Labor and Workplace Development

[Thebashartesla]

Hey all

I'm a self employed photographer living in the state of New Jersey. Recently, I was sent a letter from an auditor at the department of labor and workplace development, which reads:

"An examination of the books of (company), Inc disclosed payments were made to you for services performed as a subcontractor in years 2017 and 2018. This examination includes making independent contractor/employee determinations under R.S.43:21 - 19(i)(6)(A)(B)(C) of the New Jersey Unemployment Compensation Law.

Please forward copies of the following for the years indicated above:

Federal income tax returns - Form 1040 Schedule C Front and Back
Or
Form 1065 or Form 1120, 1120S

In addition, provide copies of the following if applicable:
Business Cards, Business Invoices, Letterhead
Telephone book/newspaper/internet advertisement
Business Insurance

This information is necessary to correctly determine your relationship with the above named employer. "

They then go on to send me a questionnaire to return with the requested documents entitled Worker Classification Questionnaire:

To me, it seems like they've audited the company i performed services and are looking for worker misclassification, but my accountant thinks they're trying to figure out if I have people working for me (which I don't). Any help on the matter would be appreciated.

 

[adjusterjack]

Either comply or talk to a lawyer and see if you have the right to remain silent.

You'll probably get similar responses no matter how many websites you post on.

 

[cbg]

I'm afraid I don't understand why it matters what the reason is. It's not like the answer is going to be different depending on their purpose.

 

[hrforme]

honestly I personally agree with you but that is not one of my states. I do know many states are looking at company's and checking IC status. Some of the things that help prove you are an IC is that you have more than one client, that you have your own business insurance, that you advertise and have marking to get more than 1 client, whether you subcontract or have employees of your own etc. No two situations are the same so they tend to ask detailed questions.

If this client is just one of many you have nothing to worry about. If not, in the end they may find you should have been an employee and the client will have to deal with that fallout.

If you have employees/ICs or others you sub to, in your own business, it's your responsibility to make sure you also are classifying them correctly.