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To Sub-Contract or to Employ? Many new business start out as a one woman or man show. Eventually, as we all hope, our business will grow to the point where we need extra help. Some of us don't want to have the headache of withholding taxes out of our employees' checks so we “subcontract”. So whats the difference? Well, according to the IRS there is a BIG difference and you can get in trouble if you call your actual employees “sub-contractors” and report them as such. If you classify your employees and independent contractors when they are actually employees. You can be severely penalized by the IRS. So how can you tell if you have an employee or subcontractor? If you must provide training, equipment, set the hours of your worker then you most likely have an employee. Take the steps and take taxes out of your employees paychecks and report accordingly. There are worse things, including the experience of being audited by the IRS which you can safely avoid. Source: http://www.peakconsultinginc.com/Articles/employee_vs_independent_contract.htm
Buy This Space! Some feedback from our valued members: "Dear Maribel, I would like to thank you for the lead that we received from the window cleaning directory. I appreciate your website and directory. We have received a couple of different leads, it helps our business with new continued growth!! Thanks!! Sincerely, D.Day, Owner Streakfree Window Cleaning & Maintenance" "I get a lot of leads form you guys thanks a lot. Doing great Thanks so much." - A to Z Cleaning "Thank you for the lead. I really appreciate all that you are doing for our company." - Seth Brown Panes & Drains Dear Maribel, I want to thank you for the great job you do. I recieved a lead for a large disribution center. This turned out to be a win-win situation for both me and the customer. We owe it all to you. Thank you again for all your efforts and helping our company grow in a direction we can be proud of. Troy Nelson Xtreme Cleaning Janesville, WI When Quality Counts www.1xtremecleaning.com |
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