As a new business owner, you are being bombarded with an onslaught of new and oftentimes, conflicting, information.
“How much do I have to pay them? What are my tax obligations? When am I required to pay them overtime? Etc.”
One common issue that is always confusing to new businesses is whether or not you have employees or independent contractors working for you. This is more than just a matter of finding the correct title for those who work for you. It also has substantial tax ramifications as well. If you miss-classify your workers, you may also have substantial penalties from the Department of Labor to deal with too.
Here are a few questions to ask yourself:
- Do you instruct the person as to when, where and how work is performed?
- Did you train the person to perform services in a particular way?
- Is the person required to perform the work personally or can they have someone else do it for them?
- Do you set the hours of work for this person?
- Do you control the sequence or the order of the work performed?
- Do you furnish tools or equipment for the person?
- Does the person lack a “substantial investment” in facilities tools or equipment?
- Do you have the right to discharge this person at will?
- Can the person terminate the relationship without liability to you?
If you answered YES to any of these questions, please contact your Customer Service Representative today at Moresource for further clarification before a promise of payment for services is made to the individual.
We can help you make the correct determination in this situation!!!