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Frequently Asked Questions

Who is an "Employee"?

An employee is anyone performing service for an employer who controls what will be done and how it will be done by the worker. What is important is Does the employer have the right to control the details of the services being performed?

Who is an "Independent Contractor"?

Independent Contractors have an independent trade, business or profession. Their services are offered to the public. Independent contractors have the right to control the means and methods of how the work is performed.

What if I have a contract that says I am an independent contractor?

A written contract is not enough. if the employer retains the right to control what will be done and how it will be done, the individual is performing services as an employee.

What does it mean if I get a 1099 at the end of the year?

A 1099 form reports payments made that are not employee wages. This means the employer did not withhold state or federal tax, including Medicare and Social Security, or pay unemployment taxes.
Employees should receive a W-2 form. The W-2 form includes total wages and the amount of state and federal taxes withheld. If you receive a 1099 instead of a W-2, you may be liable for state and/or federal taxes.

What determines if a worker is an employee or independent contractor?

Historically several departments within Rhode Islannd have had their own criteria: Department of Revenue, Department of Labor and Training, Worker's Compensation, etc. The Task Force recognizes this and hopes to have amore defined definition. While there may be slight differences the right to control the work being performed is the main criteria.
Section 28-42-7 of the Temporary Disability Insurance and Unnemployment Insurance Laws of Rhode Island refers to the IRS codes and regulations.
The IRS guidelines are:
Common Law Rules