It does not fit the IRS definition of self employed person, no 1099 is required. An employee paid by the piece is still an employee. As far as the "workers comp problem", my comp premiums are a percentage of what I paid my employee. If I pay him $100, my comp premiums are $14.
I didn't expect the thread to head in this direction, questioning the legality of piecework, it is most definately legal.
The statement that "true" piecework is sub contracting is not true. I defy anyone to provide evidence that supports that statement.
Even the IBEW supports piecework:
http://www.ibewflorida.org/orgnotes/060130_miami349.htm OK, we've established that it's not against the law to base a workers pay on his productivity, but is it really workable in the electrical industry?
Can remodels and commercial TI jobs be paid by the piece? Or is the work too vague to define clearly?
Anybody here pay by the piece?
