Many start a business as a way to be self-employed. It comes full circle when their business grows to a point where they must hire employees of their own. Care should be taken to ensure that this is done legally and properly.
Know When to Hire W2 Employees Rather Than Contractors
Contractors can be hired on a 1099 basis. Some business owners try to hire everyone on this basis. However, there are some specific behavioral, financial, and relationship tests that you must consider before you can legally hire people on this basis. This is a complex matter; contact tax preparation services Long Island NY for assistance.
Understand Payroll Withholding Issues
Making a mistake on payroll withholding is one of the most serious issues in tax compliance for a small business. The mistake that many business owners make is in failing to save the money that they’ve withheld and pay this money at …