As a small business owner you may hire people as independent contractors or as employees. There are rules that will help you determine how to classify the people you hire. This will affect how much you pay in taxes, whether you need to withhold from your workers paychecks and what tax documents you need to file.
Here are some things every business owner should know about hiring people as independent contractors versus hiring them as employees:
1. The IRS uses three characteristics to determine the relationship between businesses and workers:
" Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
" Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job.
" Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
2. If you can direct or control only the result of the work done -- and not the means and methods of accomplishing the result -- then your workers are probably independent contractors.
3. Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
4. Workers can avoid higher tax bills and lost benefits if they know their proper status.
5. Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
Broward Florida Contracts with Veterinarian Assistants as Independent Contractors provide a detailed framework for the working relationship between veterinary clinics and their assistant contractors. These contracts include provisions for termination with or without cause, ensuring both parties have clear guidelines to follow in case the working relationship needs to be ended. Under Broward Florida contract law, there are different types of contracts that can be utilized in this context. Some typical contracts might include: 1. Standard Broward Florida Contract with Veterinarian Assistant: This contract outlines the basic terms and conditions of the working relationship between the veterinary clinic and the veterinarian assistant. It includes provisions for termination with or without cause, specifying the reasons that may result in termination and the steps that should be followed in such cases. 2. Broward Florida Contract with Veterinarian Assistant: Termination with Cause: This specific contract highlights the reasons that may qualify as "cause" for termination, which could include issues like misconduct, breach of contract, or failure to adhere to clinic policies. It clearly outlines the steps that must be taken by both parties leading up to and following the termination. 3. Broward Florida Contract with Veterinarian Assistant: Termination without Cause: This contract formulates provisions for terminating the contract without any specific cause. It defines the notice period required before termination and any potential consequences or compensations owed in such cases. These different types of contracts provide flexibility to suit the unique needs and circumstances of veterinary clinics and their assistants. By explicitly defining termination provisions with or without cause, both parties can have a clear understanding of their rights and responsibilities throughout the contractual period. It is important for both the clinic and the assistant to carefully review and negotiate these contracts to ensure their interests are protected and there is a clear path for termination, if required.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
