Fri, Sep 16 2011 9:40
bradley
Employee versus contractor
- If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
- If you can direct or control only the result of the work done -- and not the means and methods of accomplishing the result -- then your workers are probably independent contractors.
- Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms
http://www.irs.gov/newsroom/article/0,,id=173423,00.html
We'll be having a business lunch at Portland Technology wizards and my topic will be Employees versus independent contractor.
What I don't want to hear from someone is "I'm going to hire an employee and send him a 1099".
Control = Employment
Employment = Employee
Employee = W2 and payroll taxes, not 1099
Filed under: News