Search results for: “independent contractor”
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Employee vs. Independent Contractor: protecting the small business employer
The question of independent contractor or an employee has long been a concern to small businesses. The IRS has changed its guidance significantly over the decades of my career. The most current IRS guidance is perhaps the most complex and subject to interpretation. In the small business world, classification as an independent contractor often result…
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Uber wins independent contractor case in California
Worker classification has been one of the hottest issues of business management affecting large and small businesses alike. Yesterday one of the high profile cases in this arena was resolved when Uber announced that it negotiated the right to continue to classify workers as independent contractors in the state of California. Uber gave up the…
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Why the changes to NJ S4202 ( employee vs contractor) are no big deal
Keep it simple: if you primarily provide your labor to someone for pay then you are an employee. If you run a licensed business, with typical business features like a business plan, advertising, business insurance, and pay business taxes then you likely work as an independent contractor. I’m aware that some people are making a…
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Employee vs contractor; more misclassification risks
“Employee misclassification is a major issue. Employers who misclassify employees are failing to provide unemployment insurance and workers’ compensation. Those employers can also leave workers with large employment tax liabilities.“ This new article delivers information on even more risks. Correct handling of worker compensation is not so difficult or expensive. It doesn’t make sense to shortcut this…
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Updated professional payroll services agreement (New Jersey)
I am adding two new small New Jersey organization payroll services this week so it was appropriate to review and update my generic payroll service agreement. This confirms that I offered to establish and administer payroll services for xxxxxxxxxxx. Payroll service includes the following: Timing: The service will start within 1 to 2 business…
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Simple bookkeeping systems for sole proprietors
In general, I try to have a coaching conversation with new clients and prospective clients about the reasonable time and cost allocation for bookkeeping in relation to other business factors. We hope to see this allocation consistent with others who are successful within a business niche and, if a significant difference exists, look more closely…
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Costs associated with Paycheck Protection Program application processing
I’ve publicized here and on other platforms that my firm and some affiliates will prepare and submit economic relief applications under the CARES Act without charge. But submitting the application is the easy part. Doing the required underlying accounting and assembling the documentation to support these loan and grants applications is potentially expensive. Of course,…
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Update on Gig Workers
The evolving saga of “employee vs contractor”, from the small business employer’s perspective, means that you should revisit the conversation for business planning purposes now. Background In case you’ve been so engrossed with other headlines that you haven’t read any business news: the world of independent contractors, so-called “gig workers” is facing rapid and dramatic…
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Worker classification status; proposed change in New Jersey
This is how the so-called ‘ABC’ codification test may change for determining proper classification of independent contractors in New Jersey. Under current law, a worker can be classified as an independent contractor if: A. Such individual has been and will continue to be free from control or direction over the performance of such service, both…
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Fast paced change brings 2020 opportunities to small businesses
After some tweeking (thanks to my peers for the crowd-sourced feedback!) this is the version of the email message that will be used this week: Dear _ : This past year brought more changes for small business owners than any other year in the past generation. This means new opportunities to save money but also…