filing the appropriate forms and paying
the associated taxes.If you classify an employee as an independent contractor and you have no
reasonable basis for doing so, you may be held liable for employment taxes
for that worker.
All evidence of the degree of control and
independence in the worker and business relationship should be
considered. These facts fall into the category of
behavioral and financial control. Additionally, the evidence of the degree
of control and independence in worker and business or employer relationship
is seen in the relationship of the parties involved.
In examining the relationship between the worker
and the business, the financial control fact shows whether the business
has a right to direct or control the financial and business
aspects of the worker's job. Moreover, in examining the relationship between the worker
and the business, the relationship of the parties shows the type of
relationship the parties had. Furthermore, financial control covers facts that show whether
the business has a right to direct or control the financial and
business aspects of the worker's job such as the extent to which
the worker has unreimbursed business expenses. Also, this fact covers the
extent of the worker's investment in the facilities or tools used in
performing services. In addition, this fact covers the extent to which the
worker makes his or her services available to the relevant market and how the business pays
the worker.
Relationship of the parties covers facts that
show the type of relationship the parties had such as any
written contracts describing the relationship the parties intent to create.
This fact also covers the employee-type benefits if any provided by the
business such as insurance, pension plans, vacation or sick pay. Also, The
relationship fact covers the permanency of the relationship, and the extent
to which the services performed by the workers are taken as a key aspect of
the regular business of the employer.
Social
Security Benefits
The Social Security benefits you received in 2010 may
be taxable. You should receive a Form SSA-1099 which will show the total
amount of your benefits. The information provided on this statement along
with the following seven facts from the IRS will help you determine whether
or not your benefits are taxable.How much, if any,
of your Social Security benefits are taxable depends on your
total income and marital status.Generally, if Social Security benefits were your only income for
2010, your benefits are not taxable and you probably do not need to file a
federal income tax return.If
you received income from other sources, your benefits will not be taxed
unless your modified adjusted gross income is more than the base amount for
your filing status.
To
determine whether some of your benefits may be taxable, first,
add one-half of the total Social Security benefits you received to all your
other income, including any tax exempt interest and other exclusions from
income.Then, compare this
total to the base amount for your filing status. If the total is more than
your base amount, some of your benefits may be taxable.
