Search results
Results from the WOW.Com Content Network
The general rule is that an individual is an independent contractor if the person for whom the services are performed has the right to control or direct only the result of the work and not what will be done and how it will be done.
Learn how to determine whether a person providing a service to you is an employee or an independent contractor.
Generally, an employer must withhold and pay income taxes, Social Security and Medicare taxes, as well as unemployment taxes. Workers who believe they have been improperly classified as independent contractors generally must receive a determination of worker status from the IRS.
What Is an Independent Contractor? The IRS splits workers into two categories: employees and nonemployees (independent contractors). Is it possible to work as an independent contractor while still holding down a full- or part-time job somewhere as an employee? Absolutely!
The IRS uses common law principles to determine if a worker is an independent contractor or an employee. This IRS review relates to federal employment taxes—federal income tax, FICA taxes for Social Security and Medicare, and federal unemployment taxes.
If you’re a business using independent contractors, particularly ones not under a business-to-business contract, you need to ensure they truly are independent contractors in the eyes of the IRS. If not, you risk fines, penalties and interest if the IRS audits your business.
In Publication 15-A, Employer's Supplemental Tax Guide, the IRS identified three categories of evidencethat are relevant in determining whether a worker is an employee or an independent contractor: Behavioral control: Whether the business has a right to direct and control how the worker does the task for which the worker is hired;
This handy guide for independent contractors explains tax responsibilities, deadlines, deductions and how to pay.
You carry on a trade or business as a sole proprietor or an independent contractor. You are a member of a partnership that carries on a trade or business . You are otherwise in business for yourself (including in a part-time business or as a gig worker ).
Independent contractors generally file Schedule C, “Profit or Loss from Business” with their individual tax returns to report income and expenses to the IRS.