How 1099 Independent Contractors Can Come Back to Haunt You
It is becoming all too common for businesses to hire outsourced help and treat them as regular employees. The prime motivation behind this strategy lies in these seemingly evident advantages - companies believe they are reducing risk and it's much cheaper than hiring an in house employee (payroll tax, benefits, etc..). Small business owners, heed this warning: The IRS is cracking down on companies that hire 1099 employees. They have stated that they will begin examining small business tax filings in order to search for potential abuse by businesses who take advantage of the benefits 1099 employees give to their employers. Maine’s general contractor The makers of QuickBooks, Intuit, recently posted on their blog, that only roughly six thousand of the twenty three million small businesses in the U.S. are currently under audit investigation for not properly classifying employees. The IRS actually states that as many as thirty percent of all employees are currently misclassified as co...