Recently I had a friend tell me that he took a position at a new company. He gave his current employer a little over two week notice. Which is courteous. Don't want to bur Quitn bridges.
By the end of the first week, my friend confessed to me that he had completely checked out. He had no desire to do any work for the current employer. He was ready to move on but felt obligated to stay and muscle (unwillingly) through the remainder of his time there.
That got me thinking, when someone is leaving a company, they fall into two type of categories. The ones that Have To Leave and the ones that Want To Leave.
The Have To Leave are leaving due to circumstances out of their control such as, they are moving, they have to take care of someone, or illness. They don't want to leave and would prefer to stay. They may need the money and would like to keep in good standings so they might be able to come back one day. Those are the people who usually give it their all because they still feel it is their job and have a connection to the company. These people are few and far between but should be kept on as long as possible while the company prepares for what's next.
The Want To Leave, the majority, are the ones who are leaving because they want to. They are moving on to something they consider better. They only gave two week notice because it's the courteous thing to do. If they are not already checked out, they will be shortly.
As I told my friend what I thought, he agreed and laughed that he was taking a two week work vacation. He was right. He become dead weight to his current employer. Although he didn't mind the two week work vacation, he did mind not starting his new job and a company he wants to work for and the significant pay raise. But he still felt obligated to stick out the two weeks.
So what could he have done?
Email us or send us a comment about how you would handle this if you were the employee. Next week, we explore this from the employers view.
Jeff Mendelsohn
liquid@liquidmechanix.com Employee VS Independent Contractor
"I hate having employees - I will just make them all be contractors" said the small business owner to the business coach.
If that sounds like a good idea, think twice. In the old days (1980s and 1990s) the IRS had a list of twenty questions they asked. If you could answer YES to one, the person was likely an employee.
The current view of who is an employee falls into three categories of evidence - sounds so forensic!
Behavioral Control
--Instructions - do you give instructions--What tools are used and who owns the tools
--Who hires any assistants to work with the worker
--Who and where are supplies purchased
--Do you train the worker or is the worker arriving already trained
Financial Control
--Does worker have other customers--Does the worker invest in their own success
--Is worker reimbursed for expenses
--Can worker incur a loss
--Does worker have own workers compensation insurance
Type of Relationship
--Does worker have a written contract about the extent of the work--Does worker receive any benefits such as insurance, pension or paid leave
--Does worker provide invoice for work done
Each case is unique, but 90% or more of cases brought to the IRS attention are found in favor of the worker being an employee.
Publication 15-A and Publication 1779 detail this and both can be downloaded and read at your leisure.
Designing your business for your future means putting the right people to work in the right manner. Outsourcing has its place as do contractors AND employees may be a good idea, too. Just putting the plan in place before you leap is always better than cleaning up the mess later.
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Changing Lanes LLC | A Taxing Matter - Tax Workshop for Small Business |
| The Business Department at the Toledo-Lucas County Public Library presents: A Taxing Matter - Tax Workshop for Small Business Saturday November 12, 9Am to Noon Main Library 325 Michigan St - Toledo IRS enrolled agent, Linda Fayerweather, will discuss tax matters that effect the small busines sowner. A Question and Answer session will follow the presentation This is a free workshop, but registration is required by calling 419.259.5209 |
