If it is your stand,your product and you pay them a wage they are employees. If the stand is in their name and you pay them a percentage of the sales I think it would be subcontract labor. If you sell them your product for a price and they mark it up to resell then they would be their own employer. I think that is how it goes.
"If you have even the slightest question regarding
if someone is an employee or a sub-contractor,
they are employee's".
A sub has to have all their own tools and equipment,
and you can have no control over any of the scheduling.
In addition, they can get no more than a certain % of
their income from you. (forgot the number).
Heres how it goes, I have been a contractor for many years in the IT industry. They tried to force all of us out of contracting years ago with draconian laws. Didn't work.
IF they own all their own equipment, they have control of their own time working for you, in other words you cannot set the hours, they figure up their expenses in with their labor and bill you, they can be 1099 for the most part. There will be a question on that if the auditor comes a looking. The number 1 question will be did you supply the materials i.e. product. IT is always best to sell them the product and let them mark it up to make their money.
Examples of contract labor:
You deliver your honey to a business that extracts, processes and markets it for a fee.
Arial applications of agric. materials to your crops.
Agric. management fees.
Bee pollination brokerage fees
And, they all get their 1099's
How did this work out for you ? I am also curious as to what the farmers markets say about having hired help, most of the ones around here have a rule in place that the vendor has to be the producer (no reselling). This is what my local one states, "All products must be grown, raised, produced or made by the vendor or family member"
i believe they have to show you proof of workmans comp or proof of exemption. we also have to all have the same limits on our liability insurance although that is not quite a legal requirement. unless they are unaffordable they are employees.
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