Independent Contractor Tag

Employers are generally required to withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. Alternatively, employers are not generally required to withhold or pay any taxes on payments to independent contractors. Moreover, according...

Who counts as an employee versus an independent contractor may be about to change. A DOL proposal suggests revamping employee classification, reclassifying workers who are economically dependent on a company as employees entitled to more benefits and legal protections. The DOL has received 12,469 comments on...

When you hire someone to work for you, the worker will likely be considered either an employee or an independent contractor. Usually, you will decide whether you want to onboard an employee or simply hire a contractor prior to advertising for the available position. That...

Payroll and taxes are usually a confusing topic for businesses who can easily find themselves in trouble with the IRS if payroll taxes are not reported correctly. For churches and places of worship, payroll taxes can be especially tricky due to the dual-tax status of...

Most churches often struggle with “employee classification” usually with their musicians, nursery workers, secretaries, custodians, etc.   Generally, the IRS looks at three areas: Behavioral Control, Financial Control, and Type of Relationship. In most cases, church musicians do not pass the test of being an independent contractor...

Many businesses nowadays get in trouble for not properly identifying and differentiating employees from independent contractors. Defining what it means to be an employee or independent contractor can be tricky. According to the IRS, an organization must withhold income taxes, withhold and pay Social Security and...