The Difference Between Independent Contractor And Employee: Why It Matters

If you hire someone for a long-term, full-time project or a series of projects that are likely to last for an extended period, you must pay special attention to the difference between independent contractors and employees. Why It Matters The Internal Revenue Service and state regulators scrutinize the distinction between employees and independent contractors. That’s…

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1099 Reasons to Hire Independent Contractors

Maybe not 1099 reasons. But there are good reasons to go the independent contractor route versus hiring employees. Of course, there are also compelling reasons to go the other direction on that. There’s a lot to consider when you make this choice, so let’s dive in. Independent Contractors Versus W2 Employees Before we get into…

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3 Payroll Nightmares You Might Have

Vampire Digit might not be too scary, but you know what is? Making payroll mistakes. *gasp* Payroll is a necessary and recurring task for all businesses with employees. So making mistakes can be detrimental for a lot of reasons: Taxes. You can get loads of fees piled on if you report your payroll taxes incorrectly. Even though…

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Steps to Avoid an IRS Worker Classification Audit

Any small business must hire more people as the business grows and thrives. At the initial stage when work is sporadic, it may make sense to hire contractors like a web designer to create an online presence or a bookkeeper to manage business accounts. But as work piles up, it may require hiring a full-time…

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Employees vs. Contractors: What’s the Difference?

Picture this: You’re a successful small business owner with a growing venture. You’ve reached the point where you simply can no longer handle everything on your to-do list each day. You’re now ready to hire some help. But should you hire talent as employees? Or, should you make your team members independent contractors? It’s a…

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Employee vs. Contractor: Here We Go Again

Several years ago, I wrote an extensive article on the ten most important tests of a company in classifying a person as an independent contractor. See http://berkonomics.com/?p=662 for that important insight. But things have gotten much more complicated lately, partly because of the Uber, Lyft and other new generation of workers and the best description of…

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1099 Filing Date Just Around the Corner

If you operate a business and engage the services of an individual (independent contractor) other than one who meets the definition of an employee and you pay him or her $600 or more for the calendar year, you are required to issue him or her a Form 1099 at the end of the year to…

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Are Independent Contractors the Answer to Your Staffing Needs?

I get a lot of questions from my community about using independent contractors and/or freelancers instead of going through the hassle and expense of actually hiring employees. It’s tempting to categorize workers as independent contractors (ICs) rather than employees, because ICs are people considered to be in business for themselves. Therefore, your business is not required to…

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New Rules Issued for Employers with Independent Contractors

A small business—or a company of any size—may take on workers as traditional W-2 employees or as 1099 independent contractors. However, the federal government has issued some new rules on the classification process of workers in a business. While these “rules” are more along the lines of friendly suggestions, they’re very important to know about…

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Should You Classify Freelancers as Independent Contractors?

As a business owner, you have to make a lot of specific decisions about how your company operates. From where you purchase your inventory to how you stay in contact with your customers, you have a lot to take care of. But you may be overlooking some important factors that can dramatically change the way…

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