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Puff Daddy hasn't been paying his staff on time and justifies it by saying they're Independent Contractors, so they are more "business" associates than outright staff that REPORTS to him.
A group of Sean ‘Puffy’ Combs’ employees seem to be living up to the Bad Boy’s cable network name, revolting against the music mogul for reportedly shortchanging them over their work. If you recall, Puffy previously sparked a deal securing him music-themed cable network, “Revolt”.
Now, sources say Puffy gets away with not paying his employees by keeping them on staff as ‘independent contractors’.
Here’s the drop:
“Puffy ain’t paying his staff on time, and when he does they’re getting short changed. It’s was Andy Schuon who brought Comcast to the table.
Now, I've seen Puff's reality show. His assistants are not Independent Contractors. They report and TAKE ORDERS FROM HIM which an IC does not.
There is a test for being classified as an independent contractor. http://www.irs.gov/pub/irs-pdf/fss8.pdf. Misclassification of employees is a common practice.
There is a test for being classified as an independent contractor. http://www.irs.gov/pub/irs-pdf/fss8.pdf. Misclassification of employees is a common practice.
Puffy knows better though. He's trying to play slick with their money, so as not to pay them.
Well the IRS is going to give him a painful lesson about 1099 abuse. All the employee needs to do is file form SS-8 and the IRS rules employee needs to be W-2 over 85% of the time.
As long as you get the project finished on time, it doesn't matter when you "work", just as long as you can document it.
That is an incorrect blanket statement.
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