Options for Senior America Corp. v. U.S., 11 F. Supp.2d 666 (D. Md. 1998), found that the use of a survey by a housing services agency to establish that the treatment of unqualified home helpers for the elderly as independent contractors was an industry practice and that the Agency was therefore permitted to rely on the safe haven provision of the Internal Income Code. , are therefore not responsible for paying taxes on labour. The Tribunal found that the only question asked was whether or not the Agency relied reasonably on its survey information. The employer conducted a survey of the D.C, Baltimore, Maryland and Richmond, Virginia metropolitan areas.

The results at all sites were similar, and found that about 80% of employers classified these aid organizations as independent contractors. In reviewing the investigation, the Tribunal found that, from a legal perspective, this percentage is an “important segment” of the sector, in accordance with the requirement of letter 530 a (2) (C) ) that a significant proportion of the population follow an industry practice to demonstrate that the Agency has an appropriate basis for not treating its employees as workers. As a result, the Agency was not responsible for employment taxes. Under federal law, a company has a possible safe haven before paying taxes on work for the same workers who, under Maryland law, would be considered independent contractors. Each employer must pay its fiCA (Social Security) and DEA (unemployment insurance) tax share. 26 U.S.C 3111; 26 U.S.C 3306 (b). An employer whose employees are self-employed contractors is not responsible for paying these taxes. See Section 530 of the Revenue Act 1978; Hospital Resource Personnel, Inc.

v. United States, 68 F.3d 421 (11. Cir.1995). Under the Maryland Code Annotated, Labor and Employment, section 9-402, each employer must maintain compensation insurance for all insured workers. The Workers` Compensation Act does not apply to an independent contractor who, according to the contractor`s own resources and methods, commits to another party and is free from control over the other in the course of carrying out the work. Marine v. Service Trucking Co., 225 Md. 315 (1961). In determining whether a person is an independent contractor or a worker under the Workers` Compensation Act, a court must consider the following factors: (1) the selection and commitment of the worker; (2) payment of wages; (3) the right to end the relationship; (4) the power to control the worker`s behaviour; and (5) if the work is part of the employer`s regular activity.

Johnson v. Helicopter – Airplane Services Corp.,389 F. Supp. 509 (1974); Keitz v. National Paving and Contracting Co., 214 Md.