I’ve had an S-Corp in MA for more than 2 yrs. I have a website, business cards, etc and have had (and continue to have) more than half a dozen clients during this time. My biggest client, whom I’ve performed services for for a couple yrs is concerned that I can be considered an employee under the IRS and MA common law rules that can penalize the employer (my client) w/ back taxes, benefits, etc) by determining that I should have been treated as an employee. My contention is that as an S-Corp that pays myself a salary (I’m the only employee) as well as unemployment insurance, etc – that I could not be considered an employee. Thus, they are not at risk.

Is my analysis correct?