Legal Question in Tax Law in Florida

Re: employee tax status

Your question cannot be answered without a detailed interview concerning the particular employees involved. This area can become somewhat complex because it is a very fact driven question Simply calling some one an independent contractor and giving a 1099 (the form given to independent contractors) will not work. If you retain too much control over when, where and how the work is done, they are employees. There are safe harbor rules, statutory employees, industry practices and many many other factors to consider. The IRS is cracking down in this area so you need to get it right. If they audit you and reclassify people as employees, you are liable for withholding taxes, employment taxes, etc and your company's benefit plans may be compromised. For more information, please contact me for an appointment.