Are You Sure Your Independent Contractor Is “Independent”?

As we often point out, Mainstay does not allow “independent Contractors” (IC’s) to be covered by employee benefit plans.  There are a number of reasons for this, from taxation issues, to contradictory contract wordings, the risk of being designated a Personal Service Business to the issues around providing benefits which may cause IC’s to become employees,(amongst others).

The article below shows some of the tests and nuance that is required to protect yourself.  we can help by not putting them on the benefit plan, but beyond that, you need to use caution and get advice around these evolving relationships.


A truly independent contractor arrangement provides parties with the freedom to contract without many of the constraints applicable to employment relationships. However, not all contractor relationships are the same.

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