OK, the IRS USED to have about 20 questions in writing. Answering ONE as a YES meant you were an employee, not a contractor. The IRS has since let the waters be muddied and muddled. They make weird statements now instead (possibly to fine people and penalize them for tax reasons).I’m not sure whether he even can have insurance for this sort of work considering he’s not a licensed contractor by the CSLB. Also do I become liable being his sub as a licensed contractor?
am I still covered under his insurance the policy as a 1099 sub? If I’m to be a 1099 employee and have to get my insurance coverage I will have to renegotiate our agreed upon wage or back out.
1. If you work for that one "Company or Person" during your tenure, you are most likely an employee, IF you work under several contracts doing that kind of work you are probably a contractor.
2.If you provide only tradesman level tools (like union electrical pouch tools) then you are an employee.
3. If you do not bid every job, and have the ability to determine when and how you will be doing the work, you are an employee.
4. If you are told when and where to be for work and given company tools, you are an employee.
5. If the job you are doing requires a license to do that work, and you do not have the license, you are an employee. (think electrician or plumber).
6. IF you have not signed a workman's comp waiver YOU ARE NOT A CONTRACTOR, you are an employee.
Anyone who wants you to be a subcontractor will either have your state LICENSE on file, or will have all insurance documents and waivers, including workers comp information on file in order to hire you. If they are not asking for these then they are USING YOU and violating the law in every state as well as federal tax laws.
The real question is ARE YOU ACTUALLY IN BUSINESS as a business and or do you intend to be in this business as a sub-contractor and did you intend to BEFORE you started working for this company? If not then you are NOT a contractor at all, never intended to be and never were.
And no you are NOT covered if he claims you are 1099. Then again, if you have given him no documents to show that you are a contractor and are not being paid in a business name, his insurance will have to cover you most likely. Then he will be in deep doo.