Should I initiate a payroll service while disputing w/ tue DOL that my workers are ind.contractors?

[Oshkoshbijosh]

Jurisdiction

New York

I'm a private chef and very occasionally I hire a server to help execute an event.
The dept of labor has deemed these people to be my employees and I am in the process of disputing it. I believe we have a very strong case.

However, these questions can hang in the air for a significant amount of time. So I n the meantime, I am faced with the decision of how to engage these servers for events.

I don't want to proceed in the manner that is already in question. (I call a third party who books the server for me, but I pay the server.)

I prefer to avoid using a staffing agency, as it kills a margin in my business.

i am inclined to set up a payroll service and be compliant.

So here's my question:
Would setting up a payroll imply to the pending judgement that I'm admitting what I had been doing was wrong?

I'm a private chef and very occasionally I hire a server to help execute an event.
The dept of labor has deemed these people to be my employees and is coming after me for money. I am in the process of disputing it, and I believe we have a very strong case.

However, these questions can hang in the air for a significant amount of time. So I am faced with the decision of how to engage these servers for events in the meantime.

I don't want to proceed in the manner that is already in question. (I would call a third party who books the server for me, but I pay the server.)

I prefer to avoid using a staffing agency, as it kills a significant margin in my business.

I am inclined to set up a payroll service and be compliant so as to avoid problems moving forward.

So here's my question:
Would setting up a payroll service imply to the pending judgement that I'm admitting what I had been doing was wrong?

 

[adjusterjack]

Would setting up a payroll imply to the pending judgement that I'm admitting what I had been doing was wrong?

My guess would be no. But there's no way of predicting how the state would take it.

My other guess is (despite your assertion) that the servers ARE your employees and not independent contractors because you tell them where to be, when to be there, what to do, and when to leave.

If you haven't done so already, go to the IRS website about employees vs independent contractors and see for yourself:

Independent Contractor (Self-Employed) or Employee?

If you have any comments about why you think you have "a very strong case" post them here for some opinions.

Keep in mind that, even using a payroll service, you would have to buy workers compensation insurance, deduct tax withholding, pay into social security, and pay into the unemployment compensation system (unless a payroll service takes care of all that).

Might be better to use the temp agency that takes care of all that for you.

 

[army judge]

The only way around the employee issue these days is to engage the services of a temp agency, who wears the risk.

As far as your margin, how much will your current dilemma eventually cost you?

Raise your prices, pay the temp agency to supply your server when and where required.

Limit, as in minimize your contacts with all taxing authorities.

You're in one of the most confiscatory tax crazed places of all time, NYC, in NY state.

In NY, dead people vote, hold jobs, and pay taxes.