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Sep22

When should an employee begin earning PTO?

We have a contract employee? (1099) for 16 weeks whom we decided to place on regular payroll. When should this person begin accruing PTO (from the start date of the 1099 wages?) We are not sure what to do.

This situation is fairly common. To clarify, it helps to understand that a 1099 worker is NOT an employee — she is an independent contractor, and payments to her are not wages. And independent contractors are not entitled to PTO or any other benefits. So the employee will begin accruing PTO on the date that she actually is employed by your company.

Suppose Suzie goes to work as an independent contractor at XYZ Corp. on June 1. They like her work so much that eventually, on Oct. 1 they hire her. Suzie would begin earning PTO (and other company benefits) on Oct. 1.

It is not the workers presence in the building that triggers benefits like accruing PTO. It is the workers status as an employee of the company, not an independent contractor.

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This entry was posted on Tuesday, September 22nd, 2009 at 8:17 am and is filed under
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