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California Auto Body Workers Found to Be Independent Contractors
A California auto body business received a favorable decision by the U.S. Tax Court, finding seven of its ten workers were properly classified as independent contractors. Action Auto Body had ten persons who performed
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A Clear Resolution Has Yet to Emerge in Payroll Tax Debate
In three short weeks, many taxpayers will begin to take home less if Congress cannot come to an agreement on whether to extend the 2% payroll tax holiday. The 2% reduction is applied to
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Federal Statutory Employees and Nonemployees
Top 3 Takeaways 1: The Distinction between an Employee and an Independent Contractor is Important The distinction between employees and independent contractors is sometimes difficult because of the fact-specific nature of the determination. Even
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Calculating Payroll Tax
Top Takeaways 1: Payroll Taxes Responsibilities on Employee Side Employees pay Social Security, Medicare, Federal withholding, State withholding, and State disability taxes in the state of California. The Social Security percentage is 6.2% of
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Self-Employment Tax
Top Takeaways 1: Independent Contractors are subject to Self-Employment Tax If you are an independent contractor or self-employed, then you may be responsible for paying self-employment tax. Self-employed individuals who make more than $400
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S Corporation Compensation
Top Takeaways 1: S Corporations must pay all employees S Corporations are small businesses that typically have a limited number of shareholders who many times are employees of the company. And as a general
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