Employment Tax: Covers what kind of compensation is subject to employment tax, the difference between an employee and an independent contractor and what it can cost you to get it wrong. Also included is a short presentation that can be included about avoiding the misuse of dyed diesel.

Areas Covered     

Factors IRS looks at to determine if w worker is an employee or self-employed independent contractor. The amount of tax that an employer could be liable for because they misclassified and employee as an independent contractor. The mini presentation discusses the consequences of improper use of dyed diesel.

Who Should Attend    

Practitioners who have clients who need to be educated about the differences between employees and independent contractors.

Why Should You Attend

You or a client may be tempted to hire a worker and classify him or her as an independent contractor. Often the cost is less because the employer doesn’t have to pay employment taxes, workers compensation insurance or other benefits but treats the worker more like an employee instead of actually being independent. Ignoring the factors that IRS and states look at can produce catastrophic tax liabilities when, after an audit by IRS, its state counterpart or Department of Labor determines that compensation paid to a worker is wages and not non-wage work on a contract.  

At the end there will be a mini presentation of the dangers a truck operator faces for using dyed (untaxed) diesel.  

Topic Background    

A decision to treat a worker as an independent contractor instead of an employee can have disastrous consequences.