Rebuttal to “Don’t Hire That DJ!”, Contractors vs. Employees
You may have received the Free eBook “Don’t Hire That DJ”! It’s a great read. However, we would like to refute one major point in the e-book. This e-book is very helpful for those looking to hire a DJ, except for one key point. It’s saying this is a false claim made by some DJ companies.
****Claiming that hiring DJs as employees is superior to signing exclusive agreements with independent contractors.
I’ll refer to the IRS’s website for the definition of a Contractor Vs. Employee. Afterall, they do have the final say.
First, the IRS States: “The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.” So, if you hiring a DJ company because of their unique style and training, if your DJ is a contractor, they can choose to work as they please as long as the result is achieved. The method is a non-factor. Well I could live with that. But keep reading…
Here’s the Big Kicker! Again, a direct quote from the IRS.
“Services available to the market”
“An independent contractor is generally free to seek out business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market.” Meaning, your DJ is available to open market. You’re not getting any value of hiring that DJ. The only one benefiting, is the DJ company or what I more refer to as a “Booking Agency”. If they are using terminology such as “exclusive” or “dedicated” staff members, it would be false. But aren’t they paying for their insurance?
Maybe, but I’ll refer to the policies on Insurance. Read: DJs: Do you subcontract? Work as a subcontractor? Here’s what you need to know.
It’s a long article written by RV Nuccio and Associates the Number 1 Provider of Liability Insurance for DJs in the US. The short story is that a contractor cannot be insured by the parent company. They must have their own insurance. A basic 1 Million Dollar policy is about $250/year so if your DJ is willing to invest in that, are they worth your investment?
A Contractor is Temporary. Again quoting the IRS:
“Permanency of the Relationship. If you hire a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent was to create an employer-employee relationship.” So, if your wedding is over a year away, how sure can you be that that DJ will still be on staff and available for your wedding?
The quote in the E-Book claims, that you can hire an exclusive contractor. Regardless of “exclusive contract”, it does not hold up. The IRS is one step ahead of them.
“IRS: Written Contracts. Although a contract may state that the worker is an employee or an independent contractor, this is not sufficient to determine the worker’s status. The IRS is not required to follow a contract stating that the worker is an independent contractor, responsible for paying his or her own self employment tax. How the parties work together determines whether the worker is an employee or an independent contractor.”
Another Direct Quote from the IRS “Misclassification of Employees”
“Consequences of Treating an Employee as an Independent Contractor
If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker (the relief provisions, discussed below, will not apply). See Internal Revenue Code section 3509 for more information.”
Why do many companies choose this route? Many reasons, ignorance of the law, it’s easier, and it’s less expensive. Hiring contractors does not require paying payroll tax. So, in essence these companies are committing tax fraud if they are treating their DJs as employees but are paying them as contractors. Again, if they are not willing to invest in their employees, why should you make a big investment in them?
*They may be contractors and that’s okay, just know what how they are treating the conditions.
So, you can trust that our DJs are Employees and Amp’d Entertainment is the only place to find our Remix DJs. We train all of our exclusive DJs and I can tell, you that we turn down many applications for independent DJs looking to join our team. We only seek to hire and train the best! For more information, visit us at www.ampdentertainment.net or call us at 855-AMPD-ATL.
Remix’d Weddings is not just a concept, it’s what we do! And because we are employees of the company, you can know exactly what to expect with every dedicated staff member!
Recently Named TOP 5 DJs in Atlanta, by Modern Luxury’s Brides Atlanta
Featured in Mobile Beat Magazine December 2014, Article, “Mike Walsh Gets Amp’d”!
Check out Mike’s recent Expert Advice in the Knot Georgia Magazine Spring/Summer 2014!