IS IT LEGAL TO EMPLOY AN INDIVIDUAL CONTRACTOR FOR MORE THAN A YEAR?
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we have an individual contractors employed with our company for more than a year, I'm concerned if this is ok. We issued 1099-MISC at the end of the year. Is this legal? What is the best thing to do?
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Answer
If they meet the IRS definition of a contractor, they can be a contractor forever.
Marc Barnes
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I just finished a contract with one large company that went over 3 years. As Marc said, it depends on whether you fit the definition of a contractor. My personal experience is that sometimes large corporation HR departments get kind of antsy about this because they want to avoid any appearance that they are treating a contractor as an employee without the benefits. That is not a legal definition, it's more a touchy-feely kind of feedback I've had from corporate HR types.
Deni
