Tips to Help You Stay Compliant

What is your employment status? Do you know? Are you an employee or an independent contractor? What's the difference and why is it important?

Being an independent contractor has some benefits incomparison with being a regular W2 employee. You can generally negotiate a higher pay rate as an independent contractor.  If your business is structured properly, you may also be able to pay less in taxes.

So how do you determine your employee status? The IRS uses the following criteria:

Controlling Behavior - does the business have the right to direct or control how work is done through given instructions, training or other means. Do you control how something is done or does someone else?

Financial Control - does the business have the right to control the financial and business aspects of the worker's job.

Relationship - how the workers and business owner perceive their working relationship.

The IRS then reviews various criteria that help determine your worker status.  Please remember that all the criteria does not have to be met.

If you are an independent contractor and want tolearn more about how you can save money and reduce your tax liability, please contact us for a free consultation.