Archive for March, 2010
The Federal HIRE Act, Economic Stimulus Updates, and Healthcare Reform
Recent federal legislation can mean tax savings for employers and may have an impact on your business and your payroll activities.
HIRE Act
The Hiring Incentives to Restore Employment (HIRE) Act that was signed into law on March 18, 2010. It provides financial incentives for employers who hire unemployed workers and retain those workers for at least one year. If you are hiring, you could benefit from two provisions in the bill: Social Security Tax Exemption and Business Tax Credit. You can also find information from the IRS at http://www.irs.gov/newsroom/article/0,,id=220326,00.html.
Employee or Independent Contractor?
More and more individuals are working as freelancers and independent contractors these days—and the IRS is not particularly happy with that.
The problem is that it is sometimes difficult to determine whether an individual is an employee or an independent contractor—and this can lead to disputes with the IRS. Regardless of what label you put on a relationship, the key issue as far as taxes are concerned is control—the more control a company has over the work, the greater the chance the worker should be classified as an employee instead of an independent contractor.
