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About this time every year, senior school administrators start wishing they had a little more help in some special areas, but perhaps not a full-time person, and perhaps not a permanent employee. What are we talking about? The computer specialist, the construction manager, the retired school administrator who is just great at whatever he or she does and just wants something to do and doesn't care what he gets paid, are all great examples of this.
What's wrong with considering these people? Absolutely nothing as long as you know how to properly characterize and compensate them. If you don't, get some help and advice before you do anything.
Many times these individuals want to be characterized as consultants, not part or full-time employees. Their motivation may be TRS or other retirement compensation, social security or income tax issues. Letting any of those issues that are unique to the employee influence your decision to hire as a consultant rather than as an employee is a huge mistake. If the individual is going to be serving the school district's needs full-time and has no other on-going business in which he is a similar kind of consultant, the individual probably needs to be offered an employment, not a 1099 consulting, contract.
The following state and federal agency links should be reviewed before you make the decision. Right now, one of the hot button issues for the Internal Revenue Service is this very thing, that political subdivisions are carrying as consultants persons who ought to be characterized as full or part-time employees. The consequences are severe. Fines and penalties are the least of it. The worker mischaracterized as a consultant, if injured, is entitled to claim a right to employee benefits withheld, workers compensation and a whole host of other entitlements which employees of school districts normally enjoy and which outside employee benefit plan administrators are loathe to back date to include an omitted consultant who really should have been an employee.
Know the difference between wonderful people who are your employees and who are consultants:
www.twc.state.tx.us/news/press/2006/101806press.pdf
www.irs.gov/businesses/small/article/0,,id=99921,00.html
www.dol.gov/esa/regs/c ompliance/whd/whdfs/3.htm
If you have not done so already, consider enrolling in The Fowler Law Firm's Texas Preventative School District and Education Law Program ™. Send in the enrollment form, which you can find at http://www.thefowlerlawfirm.com/TACS_Conference_2007/PreventativeProgramBrochure.pdf, to re-ceive more information today!
The important topic discussed above will be emphasized at the Texas Association of Community Schools' 5th Annual Practical Hands-On Facilities & Construction Advice for Community Schools & Colleges Conference on Monday November 12, 2007 in Austin, Texas . Please visit http://www.thefowlerlawfirm.com/TACS_Conference_2007/EnrollmentForm.pdf to enroll. We are filling up fast but there is still time to enroll!
If you would like more information about the 5th Annual Practical Hands-On Facilities & Construction Advice for Community Schools & Colleges Conference, please visit http://www.thefowlerlawfirm.com/TACS_Conference_2007/Brochure_2007.pdf .
If you would like to return to read the Printer-Friendly version of this article, please visit http://www.thefowlerlawfirm.com/TACS_Conference_2007/
101807
.pdf.
This information is provided by Laura S. Fowler, Attorney at Law with The Fowler Law Firm PC. It is not intended as a substitute for careful review by legal counsel of your choosing. We would be most honored to assist you in your every real legal need.
Contact Laura Fowler at lfowler@thefowlerlawfirm.com
or call (512) 441-1411.
As with any legal issues, please consult your attorney with questions.
