What’s wrong with saying, “He’s a 1099″ or “She’s a W-2?”
How many times have you’ve been in a business meeting and heard someone say something like, “Oh, he’s a 1099, so we don’t need to worry about his taxes…” or “We’re going to 1099 this person…”
It’s used as a convenient colloquialism, but once the magic […]
The two thousand plus page Health Care and Reconciliation Bills are complex and rich with provisions that will take time to be fully discovered. In this article I’ll explore some of the new taxes, fines and penalty provisions that affect employers and their workers. Many of the provisions do not take effect immediately, but are […]
That’s right! For example, California’s EDD doesn’t publish this fact (government agencies don’t like to publicize these statistics) but at least 70% of all companies audited by them receive a tax assessment for misclassified workers, including back payroll taxes with penalties and interest.
There are some reports that the IRS’ finds misclassified workers in 90% of […]
Short answer: If the LLC is organized as a corporation, and is not an attorney, then a 1099 is not required.
LLC’s can be organized in different business structures
“LLC” means “Limited Liability Company.” A LLC is not necessarily a “Corporation.” A mistake many people make is to assume that anyone with an LLC is incorporated. […]
That’s correct: under the Unemployment Insurance Code 13052.5, if the EDD audits your company and decides you misclassified your consultants you will be assessed for their personal income tax withholding. Also, it is illegal for you to go back and attempt to collect the tax from the consultant after the fact.
The personal income tax […]
The unemployment rate is still climbing across the nation. For example:
Michigan’s rate reached 11.6 percent in January, the highest in the country.
Second-highest was South Carolina at 10.4 percent.
Rhode Island was next at 10.3 percent, which marked an all-time high for the state.
California rounded out the top four, when the Employment […]
Since June of last year, I’ve been reporting to you that the Department of Homeland Security (DHS) and the Social Security Administration (SSA) had joined forces to require private companies doing business with the federal government to ensure their employees are working here legally by requiring they use the U.S. government’s E Verify Program. […]
Please allow me to depart from my normal topic area and cover the new batch of scams that use Tax Refunds and Stimulus Bill Payments as their hook. The scammers are becoming so aggressive, bold and clever it’s possible for you and your staff to become victims even if you are working the cutting […]
In December I reported to you about the new rule that requires federal contractors to use the federal E-Verify System for checking the eligibility of their employees to work in the United States. The rule was originally scheduled to go into effect Jan. 15, 2009, but the Department of Homeland Security has just delayed […]
The new I-9 Form and rules governing the types of acceptable identity and employment authorization documents that employees may present to their employers was scheduled to take effect this past Monday. However, the Department of Homeland Security U.S. Citizenship and Immigration Services (USCIS) retracted the mandatory changes late on Friday.
The Obama administration rescinded the […]
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