Employee or Independent Contractor?
The often faced dilemma of being an employee versus an independent contractor is important when it comes to filing your taxes.
Employers have an advantage in classifying you as an independent contractor as they don’t have to pay their share of Social Security taxes, unemployment insurance, workers compensation or benefits.
And of course, if you’re an employee your employer sends you a W-2 of your earnings, and if you’re an independent contractor and made more than $600 in a tax year, you’re supposed to get a 1099.
But what if you’re not so sure you’re really being classified correctly? How do you go about getting a determination and what impact will that have on your taxes? If you subcontract with others as part of your home business, are your subcontractors employees?
These issues are important to employees, employers and independent contractors alike when it comes to filing your tax returns. I’ve addressed them in:
Employee Versus Independent Contractor
Employee or Independent Contractor? originally appeared on About.com Home Business on Wednesday, March 10th, 2010 at 13:58:25.
