Security guards are an essential part of any business or establishment, providing protection and peace of mind to the employees and customers. However, when it comes to the employment status of security guards, there is often confusion as to whether they are considered independent contractors or employees.
The classification of security guards as independent contractors or employees is essential because there are significant differences in terms of tax implications, benefits, and legal responsibilities. In this article, we will explore the factors that determine whether security guards are independent contractors or employees.
The Internal Revenue Service (IRS) has specific criteria to determine whether a worker is an independent contractor or an employee. Here are some of the factors that the IRS considers:
Control: Independent contractors have more control over their work than employees. They can decide when, where, and how to do their work. On the other hand, employees work under the direction and control of their employer.
Economic Realities: Independent contractors have their own business and take on multiple clients, while employees work for a specific employer. Independent contractors have the opportunity to make a profit or loss while employees receive a regular salary or wages.
Relationship between parties: Independent contractors have a contractual agreement with the hiring entity, while employees have an employment agreement. Independent contractors are also responsible for their own expenses, while employees receive reimbursement for business expenses.
Based on these criteria, security guards are usually considered employees rather than independent contractors. Security guards typically work for a specific security company or are directly employed by the business or establishment they are guarding. They work under the direction and control of their employer and are typically not responsible for their own expenses.
There are some situations where security guards can be classified as independent contractors. For example, if a business or establishment hires a freelance security guard for a specific event only, and the guard sets their own hours and provides their equipment, they may be classified as an independent contractor. However, this is a rare occurrence in the security guard industry.
In conclusion, security guards are usually considered employees rather than independent contractors. Employers must be careful when classifying workers to avoid any legal and financial repercussions. By following the IRS criteria, businesses and security companies can ensure that they classify workers correctly and comply with all legal obligations.