In the last segment I referred to tracking the spending and cost of your project to avoid entering the Land of Status Drift. There’s another “Do” you should know that will warn you when your IC’s status is in danger. Do track the progress of the project This is not just a safe practice for [...]
The time to protect your company and your consultant’s status as a true independent contractor is while the project is alive and running. In terms of IC status this is the time most companies go wrong. They often begin with a true IC (1099) and slowly turn him/her into an employee (misclassified worker) by the [...]
WASHINGTON – The Internal Revenue Service announced this week they have launched a campaign to help educate new self-employed small business owners about federal tax responsibilities. This is includes independent contractors who receive a 1099. “One of the biggest challenges faced by people starting out in business is understanding and meeting their tax filing requirements,” said [...]
This may seem simple, but before you engage your contractor, be sure you know exactly what he/she will be doing for you and exactly what the job should look like when it’s completed. Make the job specifications clear and understandable The job specification should not be a rambling description full of techno-terms only two or [...]
To avoid legal problems, financial penalties and management hassles it vital to treat your IC like an Independent Contractor*—not like an Employee. How? For starters, know and follow the Do’s and Don’ts for Using Independent Contractors… Over the years I’ve seen companies engage the perfect independent contractor and slowly turn him/her into a misclassified employee [...]
It’s tax season and recently the Internal Revenue Service announced that they have updated their estimates of the Tax Gap (the difference between what the IRS believes taxpayers should have paid on a timely basis and what was actually paid). Guess what? The Tax Gap is larger than they had originally believed (the most current [...]
Officials from the Internal Revenue Service and more than two dozen state workforce agencies announced at the end of 2007 they have entered into agreements to share the results of employment tax examinations. Their new partnership will enable the IRS and state tax agencies nationwide to more effectively seek out and penalize businesses that misclassify [...]
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