Independent Contrator vs. Employee

I should hear from the company I had a second interview with on Tuesday by the end of this week or early next week. I’m really hoping I’ll be offered the position, but I really don’t know at this point. I’m not sure how many other people are vying for the same position. If they do offer it, then the following won’t be an issue.

I mentioned previously that my former employer has contacted me regarding doing contract work for them. We’ve been emailing back and forth … me asking questions, him answering.

I’ve never done contract work before, so I don’t know what kinds of questions to ask or what to be concerned with. I do know that I would be responsible for:

1. paying my own taxes
2. taking care of my own health insurance
3. parking costs for working downtown

I did a quick search for information about doing contract work and taking care of taxes. I found this tidbit of information:

Life As a Contract Worker

Avoid Pitfalls

You’re smart to be concerned because there could be many pitfalls. First, are you really a contract worker or an employee? There are many “tests” for this but if you work on their premises during hours set by them ( e.g., at least four hours each day or whatever) and use their equipment (computer, copier, etc.), you’re an employee and should be paid as such (they pick up the employer’s share of payroll taxes). Also, don’t overlook the “hidden” costs of working transportation, clothing, meals, gifts, etc.

According to this … I would still be considered an employee since I would be going in to their office during normal business hours and using their computer (the one I used when I was there full-time).

I REALLY wish I knew an accountant. I’m not sure who I could talk to to find out for sure. And I don’t have money to talk to an actual perfessional person (hell … right now I don’t have money for food and it’s really tight for bills … unemployment money just doesn’t cover much).

Does anyone out there know anything about this or know anyone who does? I want to be fully informed before I agree to anything. And if the way things are would still qualify me as an “employee”, I don’t wanna get stuck paying taxes as a contractor when legally I don’t have to. I just don’t know. Guess I need to do more Google-ing.

UPDATE (1:49pm):
I’m doing some more searching on this topic. The links I’m posting here are more for my own reference so I can come back to them as needed.

Employee or Independent Contractor - a quick guide

Employees vs. Contractors — What’s The Difference?

Independent Contractor Versus Employees: How to Tell the Difference

On page 56 of HANDBOOK FOR SMALL BUSINESS

However, whether such people are employees or independent contractors depends on the facts in
each case. The general rule is that an individual is a independent contractor if the employer has the
right to direct only the result of the work and not the means and methods of accomplishing the result.

UPDATE - 09 Oct 06 9:41am
Independent Contractor Verification - ND Dept. of Labor link

Mood: confused   ATWT