Wednesday, December 15, 2010
The work of the independent contractor law
An independent contractor is a person who sells and services to customers of your choice and whose work is under his direction and control. The legal treatment of independent parties differs from the staff. TaxationFor a company employee tax differs from independent contractors. The law generally provides that a company must pay various taxes on salaries, he pays his employees. However, it usually does not pay taxes on wages to its independent contractors.Internal Internal Revenue Service DefinitionThe revenue service (IRS) has established three categories of criteria to distinguish between employees and independent contractors. The first is behavioral and focuses on the degree of control, the society is where an employee performs its work. The second is financial and focuses on the level of control of the company on the financial aspects of the employment of a worker. Then is the nature of the relationship between the company and the worker in the game. for example, if the work is an essential aspect of an employee as an independent contractor business.ConsiderationsMisclassifying is a violation of the rules of the IRS. The company can control employment liable for these workers. Furthermore, the classification is is a violation of the right of the worker compensation and shall be punished by law.