Employee vs. independent contractor: How should you handle worker classification?
To save money, your business may treat workers as independent contractors, rather than employees. Be aware that the IRS looks for businesses that improperly classify workers. It’s best to handle independent contractors so the relationships comply with tax law. This includes not controlling HOW the workers perform their duties, not treating them like employees, and providing annual Forms 1099. You can file optional IRS Form SS-8 to receive a determination of a worker’s status. But filing this form may trigger an audit. Contact us for ways to proactively plan ahead.
06 May 2020 - News