Tuesday, July 30, 2013

Independent Contractor vs Employee

There is a buzz in the air of tax land about the mistaken choice that many often make regarding the treatment of themselves as independent contractors working for companies when they should really be treated as employees by those companies. Please be aware that the Internal Revenue Service really has devoted a lot of manpower to uncover this faulty practice and know that there are whole departments in the Internal Revenue Service offices in various localities around the United States specifically dealing with this.
If you might feel that it is easier for the people working for you to pay their own taxes because you don't wish to have to deduct and pay payroll taxes, the Internal Revenue Service has eased that situation by imposing the compulsory enrollment in the EFTPS process. You don't have to do anything any more other than just pick up the phone, and phone in what the payroll tax deposit will be and the IRS will simply withdraw the funds from your business account.

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