STATE OF CONNECTICUT

EMPLOYMENT SECURITY DIVISION

UNEMPLOYMENT COMPENSATION TAX DIVISION

SELF-ASSESSMENT OF THE EMPLOYER-EMPLOYEE RELATIONSHIP FOR CT UNEMPLOYMENT TAXES

The determination of independent contractor status versus employee status is often a complex decision.  Connecticut unemployment law states that employment is any service performed under an express or implied contract of hire that creates the relationship of employer and employee.  Workers who are employees under the common law definition of master and servant (the standard applied by the Internal Revenue Service) are therefore covered for state unemployment purposes.  In Connecticut however, irrespective of whether the common law relationship of master and servant exists, the law holds that service will be considered employment subject to the act unless the service recipient can establish compliance with Connecticut General Statutes Section 31-222(a)(1)(B)(ii), commonly referred to as the AABC@ test which is outlined below.

To be considered an independent contractor, an individual must meet all three of the following tests.

A.    The worker must be free from direction and control in the performance of the service, both under the contract of hire and in fact.  (Essentially, this is the common law definition.)

AND

B.    The worker=s services must be performed:

EITHER

(1) Outside the usual course of the employer=s business

OR

(2) Outside all of the employer=s places of business.

AND

C.    The worker must be customarily engaged in an independently established trade, occupation, profession or business of the same nature as the service being provided.

Why does this qualify as blog material? Well simply because with HSH Pet Care, you are getting not only the best pet care available in CT but a co. that considers its reputation in business practices as well. We want everyone to know who and what they are getting and that doing the right thing is important to us as it is our clients. We have always maintained an employee/employer relationship and have been fighting to have these "sub contractor" loopholes in the tax & compensation legislation identified. This is a great win for the cause!