Adding a product photographer, virtual assistant, bookkeeper or graphic designer to your business? Protect your business with a solid understanding of the criteria between contractor vs. employee relationships, and the responsibilities that ensue.
This 4-page handout explores the difference between contractors and employees. From a tax perspective, independent contractors and employees are treated very differently. It is the IRS and the Department of Labor that determine if your contractor should have been on your payroll (and then hitting you with back taxes and penalties if you got it wrong). To help avoid any IRS mishaps, download this free guide where we cover:
- How contractors and employees are treated differently
- Common Law rules
- Assessing your work relationships
- The IRS’ 20 Factor Test
- Differences in filing contractors vs. employees
- Identification Numbers you’re required to have
Confident about your contractor relationship? Check out our free Flow Chart for determining if you need to issue them a 1099. For more tips related to the TPT Community, join our Facebook group Tax Tips for TPT Sellers and follow us on Instagram.