Firing an employee with a contract

[mediprac]

I own a small LLC and we are growing. I currently employee a independent contractor but my accountant says she really is an employee. If I keep her on with a contract that needs to be renewed, how will that affect my unemployment insurance if I decide not to renew her contract and effectively "fire" her. Will I still be responsible for her compensation through unemployment insurance. My concern is that since one of my clients is about 60% of my business if we lose this client I won't need the "employee". She works flexible hours because she has two kids with medical issues, and I have prepared a list of objectives & goals for her, stating that her hours will be from 0-20 per week, but I don't know if that will protect me if she works a pretty consistent 15-20 per week and then I decide not to renew her contract. She is not happy that I am changing her status to employee and she will therefore have to pay social security tax. Her annual income for 2011 will be $8000-$9000. Thanks for your help

 

[army judge]

I own a small LLC and we are growing. I currently employee a independent contractor but my accountant says she really is an employee. If I keep her on with a contract that needs to be renewed, how will that affect my unemployment insurance if I decide not to renew her contract and effectively "fire" her. Will I still be responsible for her compensation through unemployment insurance. My concern is that since one of my clients is about 60% of my business if we lose this client I won't need the "employee". She works flexible hours because she has two kids with medical issues, and I have prepared a list of objectives & goals for her, stating that her hours will be from 0-20 per week, but I don't know if that will protect me if she works a pretty consistent 15-20 per week and then I decide not to renew her contract. She is not happy that I am changing her status to employee and she will therefore have to pay social security tax. Her annual income for 2011 will be $8000-$9000. Thanks for your help

Why on earth would even go down that road?
Have you vetted this with your attorney?
Do you have an attorney?

You don't want anyone on contract.
You might want a contractor, but you don't want to be party to that employment contract.

So, why not hire her through an employment agency?
You pay the agency a flat fee.
The agency then pays her and handles all the crap associated with her employment.

But, you really, really, really need to consult an attorney about your hiring practices.
Never put anyone on contract.
But, if you do, it isn't a lower level employee.