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Do people you recruit become employees? I am running a forum posting service, and the more I look into it, technically, I employ my posters because I pay them... I am currently creating a real life company for all my websites and some other things I'm doing, but need to know if in fact, I have mployees, or if they are simply contractors... my sales are way too high to not be reporting, but if it means ill have to get into employment taxes, etc... ill sell the service.

Any advice?..

Comments (7)

They can be contractors IF you have contracts with them. If you pay them by the job it is easier to keep them as contractors but if you pay them on a weekly basis you will need to set them up as employees...

Comment #1

Thanks for the reply, it's much appreciated.

They are paid by the job and have to accept the job first.

Getting people to sign and mail something back will be nearly impossible, is there an "official" way of them signing something I can keep on record?..

Comment #2

Use fax!.

Write the contracts -> email them to your people -> tell them to sign the contracts and send them back by fax. This is how some services work.....

Comment #3

I thought about that actually, and those who are serious about it, would get them back to me.

Just trying to cover my behind is all.

Thanks for the replies!..

Comment #4

There are many other factors to consider. I would suggest you consult an attorney who can tell you the laws of your state. Is your company incorporated? If not, you should seriously think about it due to liability factors...

Comment #5

Yes, the laws will vary form state to stae of country to country, but I can offer this...

You can setup workers as employees or cotractors. Your best bet is to keep them as contractos, and yes, you can pay contractors weekly without having to make them employees.

So the first thing I would do is every person you pay, send then a contractor's agreement that they must sign and fax back ans have them send you a signed original in the mail. Anyone who does not send the contractors form back, stop paying them. That would eliminate waiting for paperwork.

In the States, anyone paid over $599 must receive a 1099 att eh end of the year.

As contractors, they get no benefits and you are not subject to the costly benefits associated wih employees...

Comment #6

You can also place a small contract in the paypal notes with something like this: Or something like's just a quickie but you should get the idea...I assume you paypal people...

Comment #7

This question was taken from a support group/message board and re-posted here so others can learn from it.


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