Federal employee or contractor employee? How the law distinguishes between the two ... and why that distinction is important to you!Reres, Matt
A statutory employee is a type of independent contractor who is considered an employee for payroll tax purposes. As an independent contractor, they pay their own income taxes and don’t receive full-time employment perks, but they do benefit from employer contributions toward Social Security and M...
Anyone considering whether to take a job as an independent contractor needs to weigh the pros and cons of contract work before signing on. Keep in mind that this may be a step toward getting a permanent employee position. For example, someone who steps in as a freelance worker on a contrac...
Asking yourself these types of questions can help you determine if your worker is a contractor or an employee. Some states set their own laws when it comes to classifying independent contractors. For example, California has a newCalifornia AB 5law that requires most industries to use the ABC ...
Although a contract may state that a worker is an independent contractor, the IRS officially determines this based on how the parties work together. Major deciding factors include: Nature of the work: If the work performed is considered a key business aspect (and thus if it’s more likely th...
Small business owners and self-employed individuals can use a Schedule C form to report profits or losses from a business. When you file your taxes, you can attach Schedule C to your regular 1040 form. If you recently became self-employed or started a bu
Employees are subject to federal and state employment laws. Work. Contractors typically have more freedom than an employee. In fact, if an employer places extensive restrictions on a contractor, they may be legally required to reclassify them as an employee. ...
tell you route details before you accept a delivery; and pay you at least once a week. The Bill suggests contacting the NY State DOL if you recognize that you may have been misclassified as an independent contractor. The notice doesn’t tell contractors how they might recognize misclassificatio...
A statutory employee is an independent contractor who is considered an employee for tax withholding purposes. An individual must meet certain criteria to be considered a statutory employee. Statutory employees can also deduct work-related expenses on Schedule C when they file their annual tax returns...
(has no end date), and doesn’t offer any real autonomy on how or whether to work, the person stands a good chance to be considered an employee. The employer could be liable for benefits, overtime, taxes, and fines by the federal or state Department of Labor for deeming them ...