Monthly Archives: July 2013

Employee or Independent Contractor- Why does it Matter?

Employee or Independent Contractor

Why Does Classification of Workers Matter?

Blog Written By:  Coleman Jackson, Esq. | | 214-599-0431 and Spanish 214-599-0432.

July 18, 2013

How should you make a determination?

How does the Internal Revenue Service make a determination?

Typically when Internal Revenue Service auditors examine a business for the purpose of determining worker classification, the Service will generally follow the United States Supreme Court’s 1947 decision in a case called, United States vs. Silk.

In the Silk case, the Court said that whether a worker is properly classified as an employee or independent contractor turns on all the facts and circumstances. The Court delineated 20 factors, which if a majority of the factors can be answered yes, then the Internal Revenue Service is more likely than not, will classify the worker as an employee. These 20 factors are as follows:

  1. Is the worker required to comply with instructions about when, where, and how the work is to be done?
  2. Is the worker provided training that would enable them to perform the job in a particular way?
  3. Must the worker perform the services personally?
  4. Is there a continuing relationship between the worker and the entity that hired the worker?
  5. Are the services provided by the worker an integral part of the business’ operations?
  6. Does the entity hire, supervise or pay assistants to help the worker on the job?
  7. Does the recipient of the worker’s services set the work schedules?
  8. Is the worker required to devote his or her full time to the person for whom he or she performs services?
  9. Is the services performed at the place of business of the entity or at specific places designated by the business?
  10. Does the recipient of the services direct the sequence in which the work must be done?
  11. Is the method of payment hourly, weekly or monthly as opposed to commission or by the job?
  12. Are business and/or traveling expenses reimbursed by the business to the worker?
  13. Are regular oral or written reports required to be submitted by the worker?
  14. Does the company furnish computers, work tools and supplies used by the worker?
  15. Has the worker failed to invest in equipment or facilities used to provide services?
  16. Does the arrangement put the worker in the position of realizing either a loss or profit on the work?
  17. Does the worker perform services exclusively for the entity rather than working for various other entities at the same time?
  18. Does the worker make the worker’s services available to the general public?
  19. Is the worker subject to dismissal for reasons other than nonperformance of contract specifications?
  20. Can the worker terminate the relationship without incurring a liability for failure to complete the assigned job?

Why does it matter how a worker is classified?

  1. The cost for misclassification of workers can be tremendous.
  2. First and foremost your employees could be erroneously carrying the burden of self-employment taxes.
  3. Misclassification of your workers means that you (the employer) are not paying your fair share of taxes and that may subject you to back taxes, interest and penalties. The Service wants the taxes to be paid by the proper party.  Noncompliant entities could be eligible for certain safe-harbor provisions of the Internal Revenue Code.
  4.  There are also certain State of Texas consequences for failing to properly classify workers.  Therefore proper classification of workers is both a federal and state tax law issue.  There could be civil and criminal consequences for failing to properly classify workers in the State of Texas.
  5.  It is important that immigrants pay their fair share of taxes.  It is also fair for immigrants to be properly classified as employees or independent contracts depending upon all the facts and circumstances.

Why Risk Being Caught – Act Now!

If you are a worker and don’t know how you should be classified, you should contact a tax attorney to discuss all the facts and circumstances of your particular situation because we only discuss general principals in this blog.

If you are an employer and want to do the right thing and avoid possible huge consequences in the future for misclassification of your workers, get legal representation to review your situation today.


Professional Legal Services Corporation
Immigration & Tax Law Firm

6060 North Central Expressway
Suite 443
Dallas, Texas 75206.
Office Phone:  (214) 599-0431 | Email: | Firm Site:

Immigration Alert: U.S. Department of State Visa Bulletin Category F2A is Current Beginning August 1, 2013



Written By:   Coleman Jackson, Esq. | | (214) 599-0431 or Spanish (214) 599-0432

July 17, 2013

Immigration Alert:  Green Card Holders who desire to get Green Cards for their Spouses and Children (unmarried and under 21 year olds) need to file the appropriate applications and supporting documentation on behalf of their spouses or children beginning August 1, 2013.

These folks are in Visa Bulletin Category F2A.  That typically meant that their spouses and children had to wait years for a visa to become available.  Well in the August 2013 Visa Bulletin Category F2A is “C”, which means that a visa is currently available starting August 1, 2013.  The category could regress (that mean become not current, which means that these folks will have to wait until it becomes current again if they fail to act).

For example,   in November F2A could regress where people have to wait years for a visa to become available.  It could regress anytime after August 2013 without advance notice.  So these folks must act immediately by filing for Green Cards for their spouses and children beginning in August 2013.

The United States Department of State Bureau of Consular Affairs August 2013 Visa Bulletin reads as follows:


F2A: This category has become “Current” for August, and is expected to remain so for the next several months. This action has been taken in an effort to generate an increased level of demand. Despite the fact that there are large amounts of registered F2A demand, currently there are not enough applicants who are actively pursuing final action on their case to fully utilize all of the available numbers.

If you or your spouse or children are in Category F2A, contact an immigration attorney now.

This is an excerpt from the August 2013 Visa Bulletin, which shows that category F2A, is Current beginning August 1, 2013:

All Charge China India Mexico Philippians
F2A  C C C C C

This means that category F2A is current for all of the listed countries.  That is Green Card Holders from any country can apply for Green Card’s starting August 1, 2013 for their spouses and children.


Professional Legal Services Corporation
Immigration & Tax Law Firm

6060 North Central Expressway
Suite 443
Dallas, Texas 75206.
Office Phone:  (214) 599-0431
Firm Site: