Tag Archives: Misclassification of employees as independent contractors

Employee or Contractor

Today TaxMama® hears from Roger in the TaxQuips Forum who is frustrated with the concept. “I guess my question would be, what is different about what I’m doing and, say, a general contractor ICing a plumber regularly to plumb houses he is building? Or a magazine that subs out to a freelance writer? These guys […]

1099ing the Gardener

  Today TaxMama hears from Donna in the TaxQuips Forum with a good question. “Do I need to 1099 the gardener that is paid $250.00 per month?”

IRS Announces New Voluntary Worker Classification Settlement Program

[Note: Stay tuned to TaxMama’s TaxWatch column in MarketWatch.com next week, for an anlysis of this program before you participate in it.] Past Payroll Tax Relief Provided to Employers  Who Reclassify Their Workers as Employees WASHINGTON – The Internal Revenue Service today launched a new program that will enable many employers to resolve past worker classification […]

Tax Provisions of the Affordable Care Act (ACA)

What: FREE IRS Webinar When: September 9, 2010 Learn about the tax provisions of the Affordable Care Act (ACA recent health care legislation) at a FREE IRS Webinar on September 9, 2010 at 2 p.m. Eastern.  The IRS’s Small Business/Self-Employed Division is presenting this FREE webinar especially for small business owners and the self-employed. Learn […]

Seven Tax Tips for New Business Owners

As you know, TaxMama is the author of Small Business Taxes Made Easy, which some people use as their business bible. Each of IRS’s tips is expanded, in detail, in Small Business Taxes Made Easy, – I’ll add the chapter references to IRS’s tips for you. A new edition of the book is due out this winter. […]

Payroll Garnishments

Today TaxMama hears from Rebecca in California who is facing serious problems. “We don’t know what to do, and now that the CA franchise tax board has garnished my paycheck, we don’t have any extra funds. This is based on tax returns not filed for 1999 and 2000. What can we do?”

Employee vs. Independent Contractor – Ten Tips for Business Owners

If you are a small business owner, whether you hire people as independent contractors or as employees will impact how much taxes you pay and the amount of taxes you withhold from their paychecks. Additionally, it will affect how much additional cost your business must bear, what documents and information they must provide to you, […]

Part-Time or Seasonal Workers

Courtesy of the Internal Revenue Service June 04, 2009 For many businesses, summer traditionally brings an influx of part time or seasonal workers into the work force. Employers must ensure they are treating these workers properly for employment tax purposes. Generally, workers are either employees or independent contractors, based upon the facts and circumstances of […]

Reporting Mexican Income

Today TaxMama hears from B in Washington State, with this question. “If I have passive rental income of $100,000 from a business in Mexico that goes into a trust in Belize, am I required to report that on my 1040 in the US? I am a US citizen and live in the US 100% of […]

Offshore Income

Today TaxMama hears from Mark in Florida who asks. “I live overseas in Oman. I am selling property in Mexico. If I have the proceeds wired to my bank in Oman do I have to pay IRS capital gains?” Dear Mark, Are you an American? Are you familiar with the concept of world-wide income? Americans […]

IRS Publication 17 Now Easier To Navigate Online

Courtesy of IRS TT-2008-11 Are you facing a lot of different tax questions this year? IRS experts have pulled together an overview of common tax issues in one convenient place — Publication 17, Your Federal Income Tax. This updated publication, available on the IRS Web site, IRS.gov, contains a vast array of helpful information for […]

Misclassified Workers to File New Social Security Tax Form

Employees who were misclassified by their employers as independent contractors should use new Form 8919, Uncollected Social Security and Medicare Tax on Wages, to figure and report their share of uncollected social security and Medicare taxes. Find out more in news release IR-2007-203. —- TaxMama Note: “Misclassified” in this case, means – workers that were […]