New businesses and nonprofit organizations often time struggle when hiring employees. It is vital to determine if individuals that are hired fall into the Employee or Contractor category.
Per the IRS, “If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker (the relief provisions, discussed below, will not apply). See Internal Revenue Code section 3509 for more information”.
Below is a brief overview of some of the key distinctions between an Employee and a Contractor:
If you have questions, or need additional information, please feel free to contact me or visit the IRS using the following link: