Cami
Boxer Insane
Independent contractor status doesn't really apply here. I understand the differences between employees and contractors and use an IC for my own company. I know there are very fine lines where the IRS is concerned when one wants to utilize someone as an IC.
In Ohio a company can utilize an IC and they can be covered under a companies group health insurance plan. They have to follow a few guidelines. They have to work at least 24 hours a week and obtain the majority of their income from that specific company supplying the insurance.
In our situation they added hubby to their payroll as an employee of the original company. That is what had me so confused since technically he isn't an employee of THAT company nor is he an employee of the 2nd company that "Bob" has part ownership of. Instead DH's company is contracted by company B (second company) and is legally an employee of the company we own. Confusing enough?
Legally there is no true connection between hubby and either company since he is an employee of his own company (receives a w2 at years end).
At any rate an application was submitted to the insurance company and underwriting approved the set-up. We have insurance through the other company now and have cancelled our COBRA coverage. I made sure to confirm with the insurance company myself before making any changes.
It is hard for me to believe/accept something I don't quite understand but I am not going to argue with the insurance company when they accepted us!
DH will receive a w2 from the company providing insurance (at least that is what we were told) even if it is just for $1.00. My accountants (husband and wife team) thought it odd but admitted they had never been faced with that set-up before. Told me to wait and see what the insurance company did since in the end it is them that has to make the final decision.
I am trying to be more of a person who lets thing go that I don't have control over and is what I am trying really hard to do with this situation.
I'm not saying it hasn't been hard but it all seems to be on the up and up! We are also dealing with the same insurance company that we have had coverage with for 20+ years so I trust they know what they are doing.
In Ohio a company can utilize an IC and they can be covered under a companies group health insurance plan. They have to follow a few guidelines. They have to work at least 24 hours a week and obtain the majority of their income from that specific company supplying the insurance.
In our situation they added hubby to their payroll as an employee of the original company. That is what had me so confused since technically he isn't an employee of THAT company nor is he an employee of the 2nd company that "Bob" has part ownership of. Instead DH's company is contracted by company B (second company) and is legally an employee of the company we own. Confusing enough?
Legally there is no true connection between hubby and either company since he is an employee of his own company (receives a w2 at years end).
At any rate an application was submitted to the insurance company and underwriting approved the set-up. We have insurance through the other company now and have cancelled our COBRA coverage. I made sure to confirm with the insurance company myself before making any changes.
It is hard for me to believe/accept something I don't quite understand but I am not going to argue with the insurance company when they accepted us!
DH will receive a w2 from the company providing insurance (at least that is what we were told) even if it is just for $1.00. My accountants (husband and wife team) thought it odd but admitted they had never been faced with that set-up before. Told me to wait and see what the insurance company did since in the end it is them that has to make the final decision.
I am trying to be more of a person who lets thing go that I don't have control over and is what I am trying really hard to do with this situation.
I'm not saying it hasn't been hard but it all seems to be on the up and up! We are also dealing with the same insurance company that we have had coverage with for 20+ years so I trust they know what they are doing.
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