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23 VAC Title 23 Agency 10 — Virginia Tax Regulations

23VAC10-500-130

Employees and independent contractors

Official textlaw.lis.virginia.gov

# A.

Employees are generally not engaged in a licensable business separate from that of their employer. Therefore, a license obtained by the employer generally covers the activities of any employees.

# B.

An independent contractor is engaged in a business separate from that of the person who contracts for the independent contractor's services. Therefore, if one licensable business subcontracts some of its business to an independent contractor, the primary business may not deduct from its taxable gross receipts any payments to an independent contractor even though the independent contractor or subcontractor is also taxable on its gross receipts.

# C.

The determination as to whether a person is an employee or an independent contractor is based on common law principles and is affected by factors such as control, who furnishes materials, and other factors.

# D.

Localities are entitled to rely upon the classification of a person as an employee or independent contractor for federal payroll tax purposes unless the taxpayer demonstrates that the classification for federal payroll tax purposes is erroneous or inapplicable.

Last amended: Historical Notes Derived from Virginia Register Volume 24, Issue 23, eff. October 6, 2008.

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Nearby sections (25 sections)
  1. 10-500-10 · Definitions
  2. 10-500-20 · Authority to impose license tax
  3. 10-500-30 · Activities subject to license taxation
  4. 10-500-40 · Exemptions from the BPOL tax
  5. 10-500-50 · Exemption for affiliated groups
  6. 10-500-60 · Gross receipts
  7. 10-500-70 · Exclusions from gross receipts
  8. 10-500-80 · Deductions from gross receipts
  9. 10-500-90 · Other exclusions and deductions from gross receipts
  10. 10-500-100 · Rates and fees
  11. 10-500-110 · Multiple businesses
  12. 10-500-120 · Multiple locations
  13. 10-500-130 · Employees and independent contractors
  14. 10-500-140 · NAICS Codes
  15. 10-500-150 · Situs of gross receipts
  16. 10-500-160 · Situs of gross receipts for a contractor
  17. 10-500-170 · Situs of gross receipts for a retailer
  18. 10-500-180 · Situs of purchases for wholesaler subject to tax based on…
  19. 10-500-190 · Situs of a business renting tangible personal property
  20. 10-500-200 · Situs of a business performing services
  21. 10-500-210 · Apportionment; in general
  22. 10-500-220 · Apportionment; agreement to apportion among localities
  23. 10-500-230 · Contractors; maximum rate
  24. 10-500-240 · Contractors; classification
  25. 10-500-250 · Contractors; list of occupations
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