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Article: IRS targets independent contractors
- Article from:
- Flooring
- Article date:
- April 1, 1990
CopyrightCOPYRIGHT 1990 Douglas Publications. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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IF YOU CAN'T PROVE YOU'RE USING A BONA FIDE INDEPENDENT CONTRACTOR, THE IRS TAX AX COULD FALL.
By Spencer Swalm
Because of taxes and government regulations, many flooring stores should be very careful when using independent contractor/installers.
Using employee/installers requires one set of compliances. For each employee, regulations require the business to pay social security taxes, unemployment and workers' compensation premiums, and in some cities, a head tax.
Take, for example, a person earning $48,000. The FICA tax would be $3,604, unemployment up to $540, and workers' compensation at least $300 (and in many cases, a good deal more).
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