How do you pay Independent Contractors?
In a small business how do you go about paying Independent Contractors?
1 answer | asked Mar 15, 2001 8:29 PM [EST] | applies to California
Answers (1)
Be careful with independent contractors
Carefully. Are you sure that the individual is truly an independent contractor, or perhaps more accurately described as a contractor? There are a number of tests to make that determination. A true independent contractor is paid a gross amount without deductions and the business declares that payment at the end of the tax year.
On the other hand, an employee must have a number of legal payroll deductions as well as certain matching tax paid by the employer. There are, of course, a number of other obligations which are triggered with respect to an employee that are not true for an independent contractor.
As I am in Pasadena, I suggest you contact an employment attorney in your area for a consultation.
In addition to local bar associations, you could contact CELA (California Employment Lawyers Association) whose website is "www.celaweb.org".
posted by Eve Chesbro | Feb 19, 2001 5:06 PM [EST]
Carefully. Are you sure that the individual is truly an independent contractor, or perhaps more accurately described as a contractor? There are a number of tests to make that determination. A true independent contractor is paid a gross amount without deductions and the business declares that payment at the end of the tax year.
On the other hand, an employee must have a number of legal payroll deductions as well as certain matching tax paid by the employer. There are, of course, a number of other obligations which are triggered with respect to an employee that are not true for an independent contractor.
As I am in Pasadena, I suggest you contact an employment attorney in your area for a consultation.
In addition to local bar associations, you could contact CELA (California Employment Lawyers Association) whose website is "www.celaweb.org".
posted by Eve Chesbro | Feb 19, 2001 5:06 PM [EST]
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