2 results for tag: independent contractor
Let's look at hiring an employee versus independent contractor including the pros and cons. If you are wondering if you should hire full time employee or use independent contractor, don’t make the mistake of thinking they are basically the same thing. They aren’t. Although both are hired to perform tasks for your business, they are not viewed the same by the IRS. And if the IRS suspects that you are not classifying your workers correctly, they might audit you. As you should know by now, auditors are not your friends.
A few common occupations that receive a 1099-MISC are sub-contractors, real estate brokers and insurance agents. Independent contractors who have their income reported on a 1099-MISC are considered self-employed by the IRS, and are responsible for paying their own taxes.