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.
Title: Understanding New Hampshire's Contract with Veterinarian Assistant as Independent Contractor with Termination Provisions Keywords: New Hampshire contract, veterinarian assistant, independent contractor, termination with cause, termination without cause Introduction: In New Hampshire, the contract between a veterinarian assistant and the employing clinic or veterinarian is an important legal agreement that outlines the working relationship and responsibilities of both parties. This detailed description will provide valuable insights into the key provisions of such a contract, including clauses related to termination with or without cause. Termination Provisions in a New Hampshire Contract with Veterinarian Assistant: 1. Termination with Cause: Under this provision, the contract establishes certain circumstances where the employing clinic or veterinarian has the right to terminate the veterinarian assistant's employment. These may include but are not limited to: — Breach of contract: If the veterinarian assistant fails to fulfill their obligations, such as negligence in patient care, disclosing confidential information, or violating clinic policies. — Professional misconduct: Instances of dishonesty, theft, substance abuse, or engaging in inappropriate conduct towards clients, staff, or animals. — Incompetence: Consistent substandard performance or failure to meet the required standards of skill and knowledge necessary for the role. 2. Termination without Cause: This provision allows either party to terminate the contract without citing specific reasons, provided that proper notice is given. The agreement should outline the required notice period, typically ranging from two weeks to one month. Different Types of New Hampshire Contract with Veterinarian Assistant: 1. Basic Independent Contractor Agreement: This type of contract outlines the basic terms and conditions of the veterinarian assistant's independent contractor status, including legal obligations, scope of work, compensation, working hours, and any specific provisions for termination with or without cause. 2. Extended Independent Contractor Agreement with Performance Evaluation: This contract encompasses additional provisions that establish a periodic performance evaluation process, allowing the employing clinic or veterinarian to assess the veterinarian assistant's competencies, provide feedback, and set goals for improvement. Termination provisions in this type of agreement often require both parties to discuss any performance concerns before resorting to termination. 3. Trial Period Agreement: In some cases, a trial period agreement may be used to evaluate the suitability and compatibility of the veterinarian assistant and the employing clinic. This contract often includes a provision for termination without cause within a specified timeframe, typically 30 to 90 days, allowing either party to terminate the relationship if it proves unsatisfactory. Conclusion: The New Hampshire contract between a veterinarian assistant and the employing clinic or veterinarian is a crucial document that establishes the working relationship and rights of both parties. Understanding the provisions for termination with or without cause is vital to protect the interests of both the veterinarian assistant and the employing clinic. Employing legal counsel specializing in veterinary contracts is recommended to ensure the contract meets all necessary requirements and adequately protects the rights of both parties involved.
