Employee versus Independent Contractor

We have an employee who receives benefits (i.e. group insurance, holidays, vacations, etc) who has an LLC. She wants us to start paying her salary to her LLC instead of her, thus using the tax ID number for the LLC rather than her SS number. Can we do this and still have her qualify as an "employee"?

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  • [font size="1" color="#FF0000"]LAST EDITED ON 04-28-03 AT 12:59PM (CST)[/font][p]The answer is No. The employee can be classified as an employee or an independent contractor- not both. They can not claim IC status and still receive employee benefits such as Health insurance, vacation and retirement plans. However, an employee misclassified as an independent contractor could retroactively be entitled to those benefits.

    If you post your email I will send you a qualifying info sheet that will help you on determining.
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