You may know the people who work for you personally, but do you really know their employment classification? Labor laws specifically define who is an Employee and who is considered an Independent Contractor. If you don’t understand the classifications or are unsure about the status of your workforce, it can result in costly fines and penalties for your business.
Determining the classification of the people who work for you also impacts collecting and paying income tax on monies paid to your workers, payments for workers’ compensation insurance, social security payments, and thresholds for liability and health insurance expenses among other responsibilities.
The distinction between Employees and Independent Contractors is being highly scrutinized by the governmental agencies that regulate and protect the state’s labor force. It is essential that you know the exact business relationship between you and your workers in order to determine their proper classification.
At Solid Rock Accounting Services, as part of our Payroll Service we will help you assess the status of your workforce and keep you on track. Each status requires different documentation to be retained in their personnel file and specific information for quarterly and annual reports. We’ll ensure you have the right documentation and that workers and withholdings are paid properly and on time.
Solid Rock Accounting Services lets you focus on what you do best. We’ll take care of the financials; you take care of your business. Call us at: 252-772-5825