IRS gives worker classification criteria

Hi guys, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.com
Today, we’re going to talk about IRS worker classification criteria
Since independent contractor or 1099 payments are not subject to payroll taxes, there is a temptation to classify some employees as independent contractors when they should not be. The IRS uses certain criteria to help determine who should be classified as an employee subject to payroll taxes and eligible for employee benefits. Here’s a partial list –
* Who controls when, where, and how the work is to be done?
* Who sets the working schedule?
* Is the payment by the hour or by the job?
* Whose tools will be used to accomplish the work?
* Does the contractor provide services to the general public?

Your answers to those questions, will help determine if you are an independent contractor or an employee.

If you like to learn more, click the link lowermytaxnow.com and subscribe to my weekly blog.

Until then, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.com