Since 2007 the amount of contractors that are paid by small businesses has doubled. It can be argued that most of this was created by the mass lay-offs during the economic downturn which lead to some folks hanging up a shingle and businesses looking to cut cost turned to contractors to lighten the burden of having an…
Category Archives: Employees
21st Century Practice
The NewsAccount always gets special attention from me when it arrives. As a younger CPA, and with our practice at ClearPath Accountants, LLC in growth mode, I look for opportunities within the profession. I found the July/August issue primed for the vision we have at our firm and our growth strategy. Stephen Taylor’s article proved…
Hire Now Act – Probably Not
Congress has introduced the Hire Now Act to provide a 10 percent tax credit for businesses that create new jobs (read new hires) or pay more to those currently working for the business. Don’t get too excited as this is an election year and not much is likely to actually become law until after November…
Pay Contractors Correctly To Avoid IRS Penalties
Many small business owners utilize contractors within their companies to assist with overflow work, projects and outsource value added services. The rules laid out by the IRS for classifying contractors for use in your business are very specific. The rules about paying contractors are equally specific. The American Payroll Association* recently updated a press release…
IRS May Provide Relief If Your Contractor Was Reclassified as an Employee
Many business owners are puzzled about classifying their labor as either employees or contractors. The IRS uses a 20 point factor test to help you distinguish. But even after reviewing the rules, there are occasions when you have hired a worker, classified them as an independent contractor, then the IRS disagrees. Once an audit is…
