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.
Hillsborough Florida Contract with Veterinarian Assistant as Independent Contractor with Provisions for Termination with or without Cause In Hillsborough County, Florida, there are various types of contracts available for veterinary assistants seeking to work as independent contractors. These contracts typically outline the terms of engagement between the veterinarian assistant and the veterinary clinic or hospital they are contracting with. The contract contains several key provisions related to termination, both with or without cause. Termination provisions differ based on the specific needs and requirements of the parties involved. Here are some common types of Hillsborough Florida Contracts with Veterinarian Assistants as Independent Contractors with provisions for termination: 1. Standard Termination with Cause: This type of contract allows the veterinary clinic or hospital to terminate the contract if the veterinarian assistant fails to fulfill their contractual obligations, breaches any terms of the agreement, or engages in misconduct. The contract may define specific actions or behaviors that would be considered grounds for termination with cause. 2. Termination without Cause: Some contracts may include provisions for termination without cause. This allows either party to terminate the contract for any reason, as long as proper notice is given. Typically, a specific notice period, such as 30 days, will be stipulated to ensure a smooth transition. 3. Mutual Termination: In certain circumstances, both parties may agree to terminate the contract by mutual consent. This provision allows for an amicable end to the agreement, where both the veterinary assistant and the veterinary clinic or hospital can terminate the contract without any adverse consequences. 4. Termination for Convenience: This type of contract provision allows the veterinary clinic or hospital to terminate the contract without providing a specific reason. It is often used when there are changes in the business needs or unforeseen circumstances that require adjustments to staffing. Regardless of the termination provision included in the contract, it is important for both parties to clearly understand their rights, obligations, and any consequences associated with termination. Contracts should be reviewed carefully and preferably with the assistance of legal counsel to ensure compliance with local employment laws and regulations. Veterinarian assistants who are considering working as independent contractors should carefully review and negotiate the terms of their contracts with the veterinary clinic or hospital to protect their rights and interests. It is crucial to have a comprehensive understanding of the terms related to termination, compensation, intellectual property rights, confidentiality, and any other relevant provisions. By establishing a well-drafted contract, both the veterinary assistant and the veterinary clinic or hospital can ensure a harmonious working relationship, provide clarity in terms of termination, and protect their respective rights and responsibilities.
