Daily Deliveries is a whole sale delivery service owned and operated by Steve Smith that delivers various food items to local stores and restaurants. In addition to regularly paid employees, Smith hires independent drivers to ensure all delivery requirements are met. Smith hires Chip Jones as one such driver. Jones owns his delivery truck and in addition to working for Smith and Daily Deliveries solicits and makes deliveries for other companies.
Smith has been withholding payroll tax from commission payments to Jones, which Jones contends should not be happening because he is an independent contractor, not an employee of Daily
Deliveries.
Under the 20 factor test used by the IRS Jones would generally not meet the standard for being an employee.
Smith has been withholding payroll tax from commission payments to Jones, which Jones contends should not be happening because he is an independent contractor, not an employee of Daily
Deliveries.
Under the 20 factor test used by the IRS Jones would generally not meet the standard for being an employee.