Independent Contractor Classification - Atlanta Attorneys

Business owners must determine correctly whether an individual providing services is an independent contractor or an employee. Paying an employee requires payment at minimum of Social Security and Medicare taxes, and Federal and state unemployment taxes. Many business owners choose the independent contractor or self-employed designation because it is cheaper. Be careful.

Due to a declining number of participants in the Social Security system, the IRS has increased its interest and review of the independent contractor vs. employee classification. If the IRS determines that a worker should have been an employee (instead of independent contractor), the costs of paying that person can increase substantially. How do you determine that classification properly?

Do not put off this important determination. Contact our Atlanta tax law attorney today to discuss independent contractor classification issues.

Employee vs. Independent Contractor Classification

Many factors are analyzed to make this important determination.

• Do you control or have the right to control what the worker does?
• Do you control how the worker does his/her job?
• How is the worker paid?
• Do you reimburse the worker's expenses or provide the worker's tools?
• Is there a written contract between the business owner and worker?
• What benefits do you provide to the worker?

The key factor for determination is the business owner's evidence of control and independence over a worker. In most cases, there are factors that support both designations. Each situation is unique and requires experience to properly determine.

Georgia 1099 Classification Lawyer — Helping You Make Smart Business Decisions

Tax attorney Jason Peck of The Peck Group, LC, in Atlanta, Georgia, has the necessary skill and experience to review your situation and objectively determine the best options for your business. Whether you are starting a new business and need evaluation of your situation or you have been contacted by the IRS to challenge your current decision, Mr. Peck has more than 15 years of experience advising and representing businesses, large and small, throughout the United States on employment tax matters.

To avoid increased costs down the road because of improper independent contractor classification, contact an experienced and skilled Georgia 1099 classification attorney online