Category Archives: Tax Information

Setting Up Your Small Business

The information presented here is designed to assist with setting up your new business and informing you of business and tax responsibilities.  Regulations are constantly being updated so be sure and check with your tax/business professional for any changes that you need to be aware of.

Working as an independent contractor is the same as having your own business and being self-employed.   Congratulations!  You have embarked on a new adventure which will provide you with more freedom and independence combined with the ability to earn more income and save on taxes.   Below is a list of things to do, some required, some optional, in order to get the most advantage from being an Independent Contractor/Self-employed business person. Continue reading

Who’s a Contractor?

Key Factors in Determining Independent Contractor Status

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  1.  Who manages the worker
  2. Who provides the equipment and facilities
  3. Is the person able to make a profit or incur a loss
  4. Can the person be discharged
  5. Is the work part of the “employers” regular business
  6. Is the relationship temporary or on-going
  7. Is the worker paid by the job or by the hour
  8. Are payments referred to as contract payments or wages
  9. Are there benefits provided
  10. Are expenses reimbursed
  11. Does the employer dictate the hours worked
  12. Does the worker have other clients
  13. Does the worker have an established business
  14. Does the worker obtain his/her own training and education
  15. Do you have a contract with the person
  16. Does the contract have an end date or is it open-ended
  17. Is the worker responsible for hiring assistants
  18. Do you provide instructions to the worker
  19. Who recruits/provides the clients/students for the worker
  20. Will the worker be working every week

Bottom line is the who, what, where and when of the job that the worker is performing.  If the employer provides the place to work, tells the person when to work and determines the project, then most likely that worker is an “employee” and should be receiving regular paychecks, with taxes withheld, culminating in a W-2 at the end of the year.