Employee vs. Independent Contractor
If you were thinking of getting additional office help and wanted to hire someone on a part-time of full-time basis you need to understand the difference between employees and independent contractors. There is a major difference between employees and independent contractors when it comes to how much tax you as an employer has to pay and withhold from their paychecks. Additionally, it will affect how much additional cost your business must bear, what documents and information they must provide to you, and what tax documents you must give to them.
Behavioral Control-shows whether the employer directs or controls how the work is done through instructions, training, supervision or other means.
Financial Control-shows whether the employer directs or controls the financial and business aspects of the worker’s job.
The Type of Relationship-factor relates to how the workers and the business owner perceive their relationship.
To learn more see: Contractor vs. Employee, Publication 1779, Publication 15-APosted in:Business Tax ArticlesThis article was written by TaxBizPro, LLC 2023, all rights reserved ©.
IRS Circular 230 Legend: Any advice contained herein was not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax payments or penalties. Unless otherwise specifically indicated, you should assume that any statement in this website or articles that relating to any U.S. federal, state, or local tax matter was written in connection with the promotion or marketing. Disclaimer: Any articles herein is designed for general information only. The information presented at this site should not be construed to be formal legal or tax advice. Each taxpayer should seek advice based on the taxpayer's particular circumstances.
Click For A Free Quote
What We Do
Free Tax Resources
1501 Broadway 12th Floor
Manhattan, NYC, 10036 USA