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An easy litmus test:

Would it be OK for the cleaner to subcontract the work?

If so, it could be legit. If not, they're employees. From the original thread, I don't get the impression he'd be OK with subcontracting, so he is probably non-compliant.

That said, I don't think its a huge deal. He'll get audited, he'll pay the owed taxes and penalties and move on with his life. I've been audited by the ESC, its really not that big of a deal.

He's also learned that his customers will pay a premium for good service, so if he has to raise the price, big deal. He'll be fine.



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