Why Lakewood Movers Use W3 Employees, Not Contractors

Reason Moving Company Hires Movers

For Lakewood movers, it is more convenient to use W3 employees instead of contractors, because there is quite a significant difference between the employee/ employee professional relationship and a company/ contractor relationship.

Besides, state agencies and IRS, which determine this type of classifications, decided that classifying a helper as an independent contractor would be difficult, especially when they work directly for a moving company and are being paid with an hourly wage.

On the other hand, a driver can be considered an independent contractor in certain conditions (if some criteria are being met).

Issuing them a 1099 at the end of the year must be based on several factors that qualify a true independent contractor:

  • The driver gets a percentage of the move, from the moving company
  • The driver pays their helper
  • The driver owns the truck, paying fuel and other expenses
  • The driver can experience profit or loss
  • The driver can accept or not accept a job offered by the moving company.

On the other hand, when a Lakewood moving company pays movers as W-3, employees are responsible for:

  • Social security
  • Medicare tax
  • Withholding state income taxes as well as federal taxes
  • Contributing to unemployment insurance fund
  • Getting worker’s compensation