Independent Contractor Trap

In our previous article, we reviewed the advantages and disadvantages of hiring independent contractors compared to employees.  Small business will want to treat all workers as independent contractors. It is less expensive and less work.  Conversely, workers prefer to be treated as employees.  The worker will pay less tax and it is less hassle.  The small business and the workers have conflicting interest.

Continue reading…


Independent Contractor or Employee Decision

Small businesses decide how to treat workers, employees or independent contractors. This decision has major impacts to both the small business and the worker.  For the business, it is less work and less expensive to hire an independent contractor.  For the worker, it is less work and less expensive to be treated as an employee.

Continue reading…


Track IRS Business Miles

We run across a lot of clients that do not keep track of their IRS business miles.  It can be a pain to record your IRS business miles.  However, not having sufficient records for your IRS business miles will cause more headaches down the road if you are audited by the IRS.  Use one of the following 4 methods to satisfy the IRS record keeping requirements for IRS business miles.
Continue reading…


2013 Form 1099 MISC

2013 Form MISC 1099

According to the IRS, you must file Form 1099 MISC for each person whom you have paid during the year, at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, health care payments, crop insurance proceeds, cash payments for fish or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate. Continue reading…


IRS Tax Penalties Abatement

It seems the IRS charges penalties for everything.  IRS Penalty for filing a return late.  IRS Penalty for paying taxes late.  IRS Penalty for not paying enough estimates.  IRS Penalty for not filing 1099s.  IRS Penalty for ….  The list goes on.  If you have reasonable cause, the IRS will abate IRS Tax Penalties.

Continue reading…