There are facts and circumstances most commonly used to determine the difference between an employee and sub-contractor. It’s a 3 part subjective analysis and some facts may indicate that a ‘worker’ is an employee, while other factors indicate that the worker is actually a sub-contractor.
The IRS consistently warns taxpayers to not get caught paying ‘employees’ as ‘sub-contractors’. But believe it or not, the IRS, may be the least of your worries. There are 7 deadly results that could occur by trying to call an ‘employee’ a sub-contractor when it’s truly not the case.
The Health Savings Account is one of the most powerful pieces of a well designed health care strategy. It includes saving money, saving taxes, building a tax-free ‘bucket’ for health care and most importantly taking control of your own health care strategy.
The U.S. tax rules that apply to ownership and dispositions of U.S. real estate by foreign persons are different in some important respects from the rules that apply to U.S. persons. Also, property managers are under special rules when managing property for foreign owners, and sellers to foreign investors can be classified as withholding agents (which have important obligations and liabilities associated with the classification).
No one wants to pay extra penalties for not making a deposit with the IRS. So I want to give you a few tips to make sure you understand the rules when it comes to filing a personal extension. Remember an Extension is NOT an “extension” to pay any taxes you may owe, but an “extension” to file.
Young or old, stable or in transition, starting a new business, or trying to find an exit strategy for a mature business, building a 10-year plan can give you a significant edge in living a happier and more fulfilling life. More specifically, for a business owner it...
Regrettably, in the early weeks of the Stimulus plan, some banks anxious to help their customers would allow sole proprietors to apply with a simple 1099, or a profit and loss statement, or even a 2018 tax return. If any of these situations occurred to you, and ultimately received a PPP loan based on this information, it’s important you get professional advice immediately on how to move forward in the forgiveness stage and subsequent application.
However, this doesn’t mean taxpayers can avoid filing their tax return OR an extension by April 15th. The tax return is still due! It’s simply that taxpayers can wait to make payment on a certain amount of taxes for 90 days.
There are 10 key pieces of the legislation that can assist business owners in one form or another. Also, realize that the definition of a ‘small business owner’ encompasses a lot of people, including you. This means sole proprietors, LLC owners, S-Corp owner/shareholders, those with employees, those without, and remember this includes the ‘gig economy’ as it’s termed such as uber drivers and those selling on the web with a side hustle!