It Really Matters What Your Status Is

        In the ever-changing business world, there is a new and growing area of the workforce. There are more job opportunities set up with the premise of being able to set you own schedule and fit that job into your life however you want to. This certainly has its appeal for many people. A key aspect of this equation for the business is that it would categorize people in these jobs as Independent Contractors. That time may be coming to an end.
          In a ruling by the California Supreme Court, the classification standards to determine if a worker is an Independent Contractor or Employee have changed. The method used in this case is the same that is used in Massachusetts and New Jersey. The consequences of a Contractor becoming an employee are substantial. For a business, this means that they will have a greater Payroll Tax responsibility among other things. An individual will see that taxes are withheld when they are made an employee. This is just the beginning of the tax changes affecting everyone involved. Getting this classification wrong will create large penalties and increased oversight from government agencies. Take the time to do research, ask questions, and correctly identify a worker’s status.

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