Hiring Independent Contractors?
Some companies work with independent contractors to save time, money and headaches.
However, there are considerable accounting and tax implications if you make the wrong choice regarding a worker’s status.
If you decide to hire an independent contractor and the IRS later reclassifies the person as an employee, your firm can be hit with a tax bill for unpaid taxes, interest and penalties. The company might also be liable for state taxes, unemployment taxes and employee benefits.
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The issue is complicated because the IRS and state revenue departments look at many factors in making a determination. Contact us for help. Our professionals can help you avoid costly problems by setting up independent contractor agreements properly at the start of jobs. |
