Payroll

Employees or contractors, that is the question.  We can help you understand the IRS rules so you can decide what is best for your company.  Here are just some things to consider:

Employee
  • Worker loyalty may improve productivity. 
  • Multiple roles performed by worker may increase work flow and can be easier to coordinate projects.
  • Control over pay rate.
  • Control over work performed.
  • Gross wages are an expense deduction
  • Company paid payroll taxes are anexpense deduction.
Contractor
  • no health benefits require
  • no payroll  taxes to pay less insurance  (still must pay workers comp)
  • Work on demand. Company has flexibility to add or subtract projects as needed.
  • Company doesn't have to supervise work being performed.
  • Misclassification Penalty: If you make an error in classifying an employee as an independent contractor, you will be liable for employment tax, interest, and a penalty