Classifying Contract Workers Aliso Viejo CA

One of biggest impediments to small business growth is the difficulty of classifying workers as independent contractors instead of employees. This is essentially a tax issue. An independent contractor -- someone who does work for your company but is not a full employee -- is responsible for paying his/her own taxes. If that person were classified as an employee, you would be responsible for taxes. But the IRS has a long list of qualifications a worker must meet to be classified as an independent contractor, and often business owners and the IRS disagree about who qualifies. The IRS qualifications are listed here, along with some steps you can take to increase the likelihood of your workers qualifying as independent contractors.

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One of biggest impediments to small business growth is the difficulty of classifying workers as independent contractors instead of employees. This is essentially a tax issue. An independent contractor -- someone who does work for your company but is not a full employee -- is responsible for paying his/her own taxes. If that person were classified as an employee, you would be responsible for taxes. But the IRS has a long list of qualifications a worker must meet to be classified as an independent contractor, and often business owners and the IRS disagree about who qualifies. The IRS qualifications are listed here, along with some steps you can take to increase the likelihood of your workers qualifying as independent contractors.

The issue of control is central to the IRS' independent contractor evaluation. If you control how a worker completes a task for you, the IRS often regards your relationship with a worker as employer-employee. In order for someone to qualify as an independent contractor, the following conditions must exist:
  • The worker hires, supervises and pays his or her assistants

  • The worker is free to work when and for whom he or she chooses

  • The worker does the work at his or her own office or shop

  • The worker is paid by the job or receives a straight commission

  • The worker has the risk of profit or loss

  • The worker does work for several businesses at one time

  • The worker makes his or her services available to the general public (sometimes indicated by having business cards or a listing in the Yellow Pages)

  • The worker cannot be fired as long as he or she meets contract specifications

Some states have rules regarding independent contractors so check with your state's employment office before hiring. In addition, certain workers are automatically classified as employees, regardless of their work arrangement with you. Workers in this category include: full-time salespeople who sell goods for resale; full-time life insurance agents working mainly for one company; at-home workers who are supplied with material and given work performance specifications; and food and laundry delivery drivers.



To increase your chances of convincing the IRS that a worker is in fact an independent contractor, take the following steps:


  • State in your contracts that a worker is an independent contractor including a statement that all payments to the worker will be reported to the IRS on Form 1099.

  • Pay for work by the job, instead of by the hour, the week or the month.

  • Have all workers submit invoices for work before paying them.

  • State in all contracts with contract workers that the individual is responsible for his or her own insurance, including workers' compensation.

  • Construct a contract that allows the contract worker to use his or her own tools and equipment, and to hire his or her own assistants.

Featured Local Company

Kyliptix Solutions, Inc.

Kyliptix Solutions, Inc.

(714) 442-7652
Irvine, CA 92616
Irvine, CA
http://www.kyliptix.net/universal_customer_relation_management.php

Kyliptix Solutions, Inc. http://www.kyliptix.net is a global organization with an extensive knowledge of the IT sector. Our extensive knowledge has instilled confidence within the marketplace and has built a reputation of consistently delivering quality and performance based solutions. Bringing tangible value is not only a focus, but a requirement, which is why Kyliptix Solutions is considered one of the pioneers of IT based solutions today and moving forward.



WHAT WE DO?

Kyliptix Solutions, Inc. offers a full suite of solutions and services to businesses globally. Our customer base is extensive and dispersed throughout the world. We offer a mixture of products and services ranging from IT software solutions, hosted services and custom development. Companies looking for comprehensive communication solutions enjoy working with our organization for multiple reasons such as; flexibility, quality, product performance, and technical expertise.

Our team of industry specialists, account managers, programmers and designers work in partnership with our clients to help them take advantage of the opportunities the Internet creates for communication.

Customer Service is at the core of what we do. We will always go the extra mile. From concept through product creation we make sure that our clients are never left behind. And because of our investment in a technology platform designed specifically for corporate communications, we also offer our clients outstanding value.

We guarantee the best technology is used at all times, hence bringing consistent value to the business community.


OBJECTIVES & MISSION

Kyliptix Solutions, Inc was formally established in 2004 but stems from a consulting organization that was started in Texas in 1999. The founder of Kyliptix Solutions, Inc saw a market need to provide solutions and services mainly related to advanced internet technologies. From inception the company has focused on addressing customer requirements by offering complete IT software solutions on multiple platforms and formats. The rapid expansion of services is truly impressive; hence a large customer portfolio has been achieved.

Kyliptix Solutions, Inc management team has over 40 years of dynamic combined experience in the Information Technology Sector. Our business focus is to assist businesses that fall within the SMB and SME markets with full featured IT Software solutions that enable organizations to be more efficient and effective in doing business. Kyliptix Solutions strength lies in the up-to-date IT knowledge and experience and we will continue to enhance our customer satisfaction and technical expertise moving forward so our customers are ensured that they are receiving the best solution(s) available today and in the future.

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