Dear Valued Customer,
What exactly is an “independent contractor”? According to the IRS, The general rule is that an individual is an independent contractor if the payer 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. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax….but not only can it get more complicated than that, you can get into lawsuits if you don’t do it right! Not only that, please take note that the California Assembly passed Bill 5 (AB 5) which might affect you if you have business in the state.
In this issue of “—————” we focus on the independent contractor. What are your tax obligations? What is the difference between a self-employed independent contractor as opposed to an employee, and more. If you are hiring, it is key that you know!
We appreciate your continued business and look forward to serving you.
Kind regards,