Independent Contractor: A New Definition?
Who counts as an employee versus an independent contractor may be about to change. A DOL proposal suggests revamping employee classification, reclassifying workers who are economically dependent on a company as employees entitled to more benefits and legal protections. The DOL has received 12,469 comments on the proposed rule, so the agency may not issue […]
What to know about taxes and the gig economy
The gig economy has a lot to recommend it, but in a recent notice, the IRS is reminding gig workers that taxes are still a requirement, even if they can be a little confusing in this model. The agency says that “taxpayers must report their gig economy earnings on a tax return – whether they […]
IRS delays implementation of $600 1099-K reporting requirement
The IRS has announced that third-party settlement organizations, such as PayPal, Venmo, and eBay, will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or to the payee for the lower $600 threshold amount enacted as part of the American Rescue Plan of 2021. Instead, the reporting of transactions in excess […]
Stay on top of collecting W-9s from vendors
Collecting W-9 forms may not be top of mind when you hire a new vendor, but getting those as soon as possible is the best way to make sure you don’t get stuck tracking them down at the end of the year as the tax deadline nears. As you know, business owners must issue Forms […]
Labor Dept. clarifies employee vs. independent contractor rule
Classifying employees or independent contractors has become more muddled during the Covid-19 crisis that has only increased the reliance on gig economy workers. In an attempt to bring clarity, the Labor Department finalized its rule earlier this month for determining whether a worker is considered an employee or an independent contractor. U.S. Secretary of Labor […]
Classified: Employees or independent contractor?
The number of employees a company has and the number of hours worked now take on more significance for business owners since federal healthcare coverage requirements are based on those variables. As a result, some employers are tempted to try to classify workers as independent contractors rather than employees. The Department of Labor and the […]