by Boris Benic | Jul 2, 2024 | Blog
Recent changes from the Department of Labor (DOL) could significantly impact how you classify workers – and whether they’re considered employees or independent contractors. This update to the Fair Labor Standards Act’s (FLSA) rules has important implications for both businesses and individuals.
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by Boris Benic | Jul 14, 2014 | Blog
An employer enjoys several advantages when it classifies a worker as an independent contractor rather than as an employee. For example, it isn’t required to pay payroll taxes, withhold taxes, pay benefits or comply with most wage and hour laws. However, there’s a potential downside: If the IRS determines that you’ve improperly classified employees as independent contractors, you can be subject to significant back taxes, interest and penalties.
To determine whether a worker is an employee or an independent contractor, the IRS considers three categories of factors related to the degree of control and independence:
1. Behavioral. Does the employer control, or have the right to control, what the worker does and how the worker does his or her job?
2. Financial. Does the employer control the business aspects of the worker’s job? Does the employer reimburse the worker’s expenses or provide the tools or supplies to do the job?
3. Type of relationship. Will the relationship continue after the work is finished? Is the work a key aspect of the employer’s business?
Determining the proper classification under these factors may not be easy. If you’re concerned you may have misclassified workers, please contact us.
© 2014 Thomson Reuters/Tax & Accounting
by Boris Benic | Aug 10, 2021 | Blog
We all know the basics of workman’s comp: it helps cover wages and medical expenses from work-related injuries. But there’s a lot more you and your employees need to understand about this benefit.
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by Boris Benic | Oct 27, 2020 | Blog
There are over 800 forms used to report income, calculate taxes to be paid, and disclose information to the IRS. Effective January 2021, there will be one more.
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by Boris Benic | Apr 1, 2020 | Blog
Although the CARES Act (ACT) covers many areas, I would like to share very important provisions where you may need to take immediate action.
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