Mid-Year Business Check-Up Tip No. 6: June 15, 2011Posted by Arieh M. Flemenbaum in Business, business check-up, Business Law, business planning, Business tax, Chicago Business, Employer issues, Employment, Legal Information.
Tags: Business, Business best practices, business laws, business plan, business planning, Chicago Business, Employment issues, small business
To help you complete a check-up and strategic mid-year planning for your business, we will publish helpful tips and ideas through the end of the month. This tip is part of our ongoing series.
Business Check-up Tip No. 6:
Review your independent contractor relationships. The Internal Revenue Service and many States (i.e., their Department of Revenue and/or Department of Labor) are auditing business/corporate tax filings and reports concerning their use of independent contractors. In cases where the IRS and/or the State tax agents reclassify “independent contractors” as employees, the business is not only required to withhold/pay the required tax payments (i.e., FICA, FUTA, etc.), they are usually also assessed significant penalties for failing to file and pay the required employment taxes. So review your situation with a business lawyer and avoid a potentially costly reclassification of your independent contractors!
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For information on how the business lawyers at Griffith & Jacobson, LLC can help your business grow, contact Arieh M. Flemenbaum at 312-236-8110 or by email at Contact Us (http://www.gjlaw.com/contact).