The IRS issued a fact sheet this summer to remind employers to correctly classify workers as either independent contractors or employees. (IRS FS-2006-21) The main factor in making that decision: control.
The more control you have over the "when, where and how" of workers' job performances, the more likely the worker would be classified as a common-law employee for whom you must withhold and pay federal taxes. Misclassification can lead to big-time back taxes and penalties.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/1978/heed-irs-warnings-about-independent-contractor-errors "