Employee or Independent Contractor: What’s the Difference?
While the exact line the determines who is an employee and who is an independent contractor is not always understood by everyone, there are some clear test that regulatory authorities use to determine if you are classifying people correctly.
Many employers would rather classify people as independent contractors because they are able to save significant employment taxes on these employees. In addition, they do not have to provide many other benefits that a typical employer would normally offer.
Regulatory authorities typically rely on three main test to determine the classification of a worker: (1) Behavioral control, (2) Financial Control, and (3) the Type of Relationship.
To find out more about what the regulatory agencies look at to make sure employers are following the rules, read our full article in the RedWolf Payroll Knowledge Base.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.