[Build-common-hackers] If you have EEs, This is good information to know
layne at einstein-hr.com
Mon Apr 23 21:35:06 UTC 2012
IRS Tax Tip
As a small business owner you may hire people as independent contractors or as employees. There are rules that will help you determine how to classify the people you hire. This will affect how much you pay in taxes, whether you need to withhold from your workers paychecks and what tax documents you need to file. Do you know the difference? Einstein HR can help you with that.
Here are seven things every business owner should know about hiring people as independent contractors versus hiring them as employees.
The IRS uses three characteristics to determine the relationship between businesses and workers:
Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job.
Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
If you can direct or control only the result of the work done -- and not the means and methods of accomplishing the result -- then your workers are probably independent contractors.
Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
Workers can avoid higher tax bills and lost benefits if they know their proper status.
Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
You can learn more about the critical determination of a worker’s status as an Independent Contractor or Employee at IRS.gov by selecting the Small Business link.
Best of Luck with getting through this 2012 tax year & don’t forget to share what knowledge you have gained, as we all could use a little help now and again………..especially when it comes to taxes.
If you are still feeling a little left in the dark, or just need some clarification:
We encourage you to reach out and let us help you find a solution. We can be your solution. We can show you that no matter how complicated and overbearing your business may seem to you, We at Einstein HR assure you that no matter what “ You are Not Alone”
Please note, we are not a tax center, but rather a PEO and Payroll Service and Federally registered company located here with-in the United States.
Click on any of the links below to take you right to an answer.
(None of these will ask you to download anything), so Don’t worry.
Request A Quote-
Nationwide Payroll Tax-
Or feel free to call us directly, no strings what-so-ever!
770- 962-1700 x 9100 or toll free- 877-687-3622 x 9100
Einstein HR- We are as Smart as We Sound.
Call today and find out if we can help your business with the things that make you no money.
770-962-1700 x 9100
Request a Free Quote--
330 S Culver St
Lawrenceville, GA 30046
-------------- next part --------------
An HTML attachment was scrubbed...
More information about the Build-common-hackers