Tax Law and Employment of Independent Contractors
American businesses rely on independent contractors rather than company employees to a greater extent than ever before. There are solid reasons for the shift toward using contractors to get the job done. Hiring contractors can significantly reduce a company's overhead while providing a flexible workforce that can easily expand or contract based on business needs.
The Advantages and Risks of Independent Contractors
One of the main advantages of employing independent contractors is that businesses are not responsible for paying payroll taxes or benefits for these workers. However, if you misclassify an employee as an independent contractor, you can be liable for employment tax retroactive to the date of hiring as well as for interest on the unpaid tax, and a penalty.
If the state or the IRS has notified you that the workers you believed to be independent contractors are actually direct employees of your company, please contact The Law Offices of Hugh Janow, LLC, in Pearl River, New York.
Our tax lawyers will dig into your company's employment records, analyze the situation and recommend a strategy for resolving the issue. We have represented companies with hundreds of contract employees dispersed throughout the nation in cases involving alleged misclassification and independent contractor taxation.
The Intersection of Tax Law and Employment Law
There are more than 20 criteria that define which workers are employees and which are independent contractors. Our attorneys will apply all the criteria to the facts of your case. Depending on circumstances, we may be able to build a persuasive argument that the workers in question were not direct company employees of your firm.
Contact The Law Offices of Hugh Janow, LLC, Today
To learn how our tax law attorneys can be of assistance to you, please contact The Law Offices of Hugh Janow, LLC, to arrange a consultation. Call 845-735-8385.
