What’s the difference between and employee and a contractor?
Some employers choose to classify their workers as 1099 contractors instead of as traditional W-2 employees. Generally, this is a bad idea that invites all sorts of scrutiny from the taxing authorities (IRS, state, departments of labor, etc.). This infographic does a good job of highlighting the differences between employees and contractors and highlights the consequences of misclassification. Why Employee vs. Independent Contractor Classification Matters [INFOGRAPHIC] | Wunderland via Work...
read moreA Heads Up to Restaurant Owners
The IRS has announced their intent to “to more closely examine the taxation of tips and service charges in 2014” (via Accounting Today). Now, we all know that employees are reluctant to report all their tips, but with the additional scrutiny we are expecting we are advising our clients to be diligent in their efforts to assure compliance with tip reporting requirements. The IRS has put together a Guide to Tip Income Reporting that you can hand out to your staff that explains the employee’s responsibility and answers...
read moreColorado’s Minimum Wage for 2014 is Now $8.00 Per Hour
Effective January 1, 2014, Colorado’s minimum wage is $8.00 per hour for regular employees and $4.98 per hour for tipped employees. Our source:
read moreContractor or Employee – That is the Question.
As a small business owner, there are many challenges to understanding all of the tax codes regarding payroll taxes and how to treat different workers in your company. Finding the right answer to the contractor versus employee question can mean a big difference in how you treat that individual for tax purposes. Let’s look at the semantics of each type of worker to better understand how it can impact your small business. Independent Contractor Doctors, lawyers, dentists, veterinarians, contractors, writers, graphic designers, and accountants...
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