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Tax Implications of Employee Classification


Worker Classification 101: employee or independent contractor - IRS

Generally, an employer must withhold and pay income taxes, Social Security and Medicare taxes, as well as unemployment taxes. Workers who ...

Independent contractor (self-employed) or employee? - IRS

Additionally, you must also pay the matching employer portion of social security and Medicare taxes as well as pay unemployment tax on wages ...

Income Tax Consequences of Worker Classification

The classification of a worker as an employee or as an independent contractor has income tax consequences as detailed below. Register for a complimentary trial ...

How Worker Classification Affects Taxes | Optima Tax Relief

Workers classified as employees have taxes withheld from their paychecks, including federal income tax, Social Security, and Medicare taxes.

Worker Classification for Tax and Employment Purposes

Federal and state agencies presume workers are employees. To be prepared for a worker classification audit, be proactive and conduct your own ...

Full-time employee vs. independent contractor: What are the tax ...

What are the tax implications? Getting employee classification right is important because it dictates how to handle each worker's income tax payments to state ...

How to Determine Employee Classification - Monster.com

For this article, we'll focus on the second type of employee classification dealing with independent contractors since it has tax implications. (The failure ...

Tax Implications of Employee Classification | Fusion CPA

The classification depends on whether your workers are exempt or non-exempt. Exempt workers are typically salaried employees, paid at least $684 ...

Worker Classification: How It Affects You at Tax Time

To misclassify your workers can lead to serious repercussions. If you incorrectly label employees as independent contractors, you may face back taxes, legal ...

Determining Worker Classifications - CapinCrouse LLP

It is important to get worker classification right because errors have tax implications for both the employee and the employer.

9 Consequences of Misclassifying Your 1099 Contractors - ADP

Employers that hire individuals as independent contractors (who should instead be classified as employees) may be held liable for failure to pay overtime and ...

To Be or Not to Be a Contractor or Employee: Tax Implications ... - PYA

If the IRS discovers a misclassification (either through an audit of the worker's personal tax return or an audit of the employer), the employer is liable for ...

A Legal Guide to Employee Classification - Keven Steinberg Law

This also means that there are different tax forms for independent contractors. At a minimum, this includes a W-9 and a Form 1099-MISC if the ...

6 Factors to Classify Workers as Employees or Independent ...

Classifying workers as employees or independent contractors is vital for tax purposes. Generally, a potential employer would prefer to treat ...

The Importance of Worker Classification for Businesses

Taking the time to classify your workers correctly now can save you a lot of trouble and expense in the future. It's a small investment that will ensure your ...

Myths About Misclassification - U.S. Department of Labor

Misclassification also hurts law-abiding business owners who don't get to compete on a level playing field when some employers wrongly classify their workers as ...

How Does Worker Classification Affect Federal Employment Taxes?

For workers who are classified as employees, an employer is required to withhold employment taxes from their wages, including federal and state ...

IRS Issues Guidance on the Tax Court's Review of Employment ...

Employers are not required to withhold income tax or pay employment taxes on payments to workers classified as independent contractors. The IRS typically makes ...

Worker Classification | Independent Contractor | Delaware CPA Firm |

With the rise of independent contractors in the new, shared economy, distinctions between employees and contractors are increasingly blurred. The tax ...

Classifying Employees Correctly | National Council of Nonprofits

In recent years the IRS has been stepping up its enforcement of employee classification, creating one more compelling reason for nonprofits to reexamine whether ...


Working With Independent Contractors

Book by Lisa Guerin and Stephen Fishman

Lunch and Learn PAYROLL: W2 VS 1099s