Independent Contractor vs Employee: How to Tell the Difference and Why It's Important
Product ID : JASO-0004
Level : Intermediate
Duration : 60 Minutes
Jason Dinesen is the President of Dinesen Tax & Accounting, P.C., a public accounting firm in Indianola, Iowa. His practice focuses on tax and accounting services for small businesses and individuals. Dinesen has extensive experience working with a third-party administrator of retirement plans and is a prior presenter of multiple 1099 seminars. Dinesen majored in corporate communications with a minor in management from Simpson College. He started his practice in 2009.
At the conclusion of the webinar, participants will be able to explain the difference between a contractor and an employee, and why it is important to know the difference. We will discuss what happens if the IRS re-classifies a contractor as an employee, and the possible relief available (called “Section 530” relief). We will also discuss the new Form 1099-NEC for reporting contract-labor pay. We will cover in-depth the 3 factors the IRS looks at for determining if a worker is a contractor or employee (behavioral control, financial control, nature of the relationship) as well as the 20-point “common law” test.
- The reporting and payroll implications of employee vs contractor
- 20-point common law test
- 3-factor IRS test
- What if an employee files paperwork with the IRS protesting being classified as a contractor?
- IRS audits of employee vs. contractor
- Section 530 relief
- The new Form 1099-NEC for reporting contract labor pay
Course Level - Basic or Intermediate
Who Should Attend
Business owners, controllers, CFOs, office managers, payroll professionals, accountants
Why Should You Attend
If the IRS re-classifies your contractors as employees it can be financially devastating. This webinar will discuss how to determine if a worker is an employee or a contractor, and why it is important. We will talk about relief available, the three big tests the IRS looks at to determine contractor vs. employee, and we will talk about reporting requirements (W-2 or 1099-NEC).