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.
Miami-Dade Florida Contract with Veterinarian Assistant as Independent Contractor: Miami-Dade County provides numerous contracts with veterinarians and veterinary assistants as independent contractors. These contracts outline the specific terms and conditions of the working relationship between the county and the veterinarian assistant. One important aspect of these contracts is the provisions for termination with or without cause. The Miami-Dade Florida Contract with Veterinarian Assistant as Independent Contractor with Provisions for Termination with or without Cause ensures that both parties have a clear understanding of the circumstances under which the contract can be terminated. These provisions protect the interests of both the county and the veterinarian assistant, promoting a fair and balanced working relationship. The contract outlines that termination can occur with cause, meaning there are specific reasons that warrant the termination of the contract. Relevant keywords related to termination with cause could include: 1. Misconduct: The contract may state that the veterinarian assistant can be terminated if they engage in any misconduct that negatively impacts their ability to perform their duties effectively or violates the code of conduct established by the county. 2. Breach of Contract: Termination may be permissible if the veterinarian assistant fails to fulfill their obligations as outlined in the contract, such as neglecting their duties, providing inadequate care to animals, or not meeting established performance standards. 3. Legal Violations: If the veterinarian assistant engages in any illegal activities, such as animal abuse or negligence, the contract can be terminated with cause. On the other hand, the contract also addresses termination without cause, meaning that either party can terminate the contract without specifying a reason. Relevant keywords related to termination without cause could include: 1. Notice Period: The contract may state that either party must provide a specified notice period before terminating the contract without cause. This allows for a smooth transition and ensures that both parties have adequate time to make alternative arrangements. 2. Severance Pay: The contract may outline provisions for severance pay if the county chooses to terminate the contract without cause. This provides financial support to the veterinarian assistant during their transition period. 3. Non-Disclosure Agreements: Termination without cause may also involve non-disclosure agreements, which prevent either party from disclosing confidential information about the other party after the termination of the contract. It is important to note that while the above keywords represent general aspects of Miami-Dade Florida contracts with veterinarian assistants as independent contractors, specific contract types may have additional provisions or variations based on the individual circumstances and requirements of each working relationship.
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.
