Add Formulas and Calculations Legal Massachusetts Independent Contractors Forms For Free

Generally, if you're an independent contractor you're considered self-employed and should report your income (nonemployee compensation) on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship).

ABC states include Alaska, Arkansas, California, Connecticut, Delaware, Georgia, Hawaii, Illinois, Indiana, Kansa, Louisiana, Maine, Maryland, Massachusetts, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, Ohio, Oregon, Tennessee, Utah, Vermont, Washington, and West Virginia.

These benefits include medical and hospital services, medically necessary equipment and prescribed drugs, weekly compensation for lost income during the period the employee cannot work, and vocational and rehabilitation services.

All employers are required to carry workers' compensation for their employees, including themselves if they are an employee of their company.

Substantial Penalties for Misclassification Under the FLSA, an employer can be liable to the misclassified worker for back overtime for a two-year period (or for three years, if the misclassification is deemed willful) and for liquidated damages.

The penalties for misclassifying an employee may include civil fines, unpaid wage penalties, interest charges, and fines and penalties from the Internal Revenue Service.

As a sole proprietor you are not required to get workers' compensation insurance coverage. If you have employees, they must be covered. If you are a corporate officer that owns 25% or more of a company, you can file for an exemption so you will not be covered under a policy.

Under Massachusetts General Law Chapter 149, Section 27C, employers who willfully misclassify workers are guilty of a criminal offense. A first-time offense carries up to $25,000 in fines and a year in jail.

The ABC test does not apply to certain careers that require licensure, for example, medical professionals. Doctors, dentists, nurses and pharmacists have their own licensing and educational requirements that exempt them. Other jobs that require a professional license also fit in this category.