The program is most effective when your company is successful and you are hiring Utah’s skilled workforce.
THE UNEMPLOYMENT INSURANCE PROGRAM
PLAYS A VITAL ROLE in keeping Utah’s economy strong
and maintaining a skilled local workforce. Funded entirely
by employer contributions, we provide temporary partial
income-replacement assistance to qualified individuals as
they seek new work. When an employee is misclassified as an
independent contractor, it hurts law-abiding business owners
who don’t get to compete on a level playing field and it denies
workers the benefits and protections (such as unemployment
insurance) for which they may be eligible. During the past
year, we found that 83% of Utah business owners audited
complied with state law in treating and reporting their workers
as employees for state unemployment insurance coverage.
Pervasive myths about misclassifying employees as independent contractors:
MYTH: A 1099
tax form is issued by
the business owner
and this makes the
worker an independent
contractor.
MYTH: Having a worker
sign an independent
contractor agreement
makes the worker an
independent contractor.
MYTH: If a
worker is not on
payroll, they are
not an employee.
MYTH: The business
owner wants the worker to be
an independent contractor,
so that means the worker
cannot be an employee.
MYTH: The
worker is an
independent
contractor
because it is an
established practice in my industry
to classify this type of worker as an
independent contractor.
MYTH: Anyone who
teleworks or works offsite
is an independent
contractor.
MYTH: The worker
has been an independent
contractor for years;
this means the person
will continue to be an
independent contractor.
MYTH: If my
worker is an
independent
contractor under
one law, the worker
is an independent
contractor under other laws.
Utah law — by default — considers all workers to be employees for the purposes of unemployment
insurance, unless exempt by law or the company shows the worker is an independent contractor. To do this, the
company must clearly establish that the worker was independently established and free from control or direction by
the company. [Reference Utah Employment Security Act 35A-4-204(a) and (b) and Utah Administrative Code, R994-204-301, 302 and 303.]
For additional questions go to jobs.utah.gov or call 801-526-9577.