Employee v. Independent Contract Agreement?

Question

I am working with another company that requires me to have W-2 paying employees and not independent contractors and I am not sure whether I should have an employee agreement or a work for hire agreement?

The thing is that the most these employees will be working would be for 6 months. Is it possible to put a termination clause in the employee contract? I am mostly trying to avoid paying unemployment insurance to these "employees" since they won't be working for me that long. I don't want them to all of a sudden try to claim unemployment insurance if they have only been working for a couple of weeks. Is that possible/legal?

Thanks for your responses in advance

Answer 1

You must be very careful. Just because you want to consider them contractors or they want to  be considered contractors doesn't work with the IRS. Here's a link that gives you the checklist to qualify them as independent contractors.

http://www.irs.gov/businesses/small/arti...