For all you business owners out there, after growing to a point where you needed to take on more people, did you always pay them regular salaries from day one or did you hire them on as, say, subcontractors, to be paid per project?
In the U.S., employment law is such that you don't get to decide if someone is an employee or a subcontractor based on how you pay them. If they show up everyday, use your tools/equipment/what-have-you, and are directed by you solely, they are employees. If a state DOL finds out, you'll be paying back unemployment insurance, FICA matching, etc...
Mark L. Smith
The comment about what makes an employee vs a contractor is valid in Canada as well.
It is the same here in the UK apparently, with something called IR35, although it is easily avoided if you're running a real business and not just cube-fodder for an agency.
Steve Jones (UK)
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