The tax laws contain pitfalls for the unwary business owner. Knowledge is your best defense. Here are four key areas you should be aware of.
Independent contractors
For some kinds of work – part-time bookkeeping, for example – you may have a choice of hiring an employee or independent contractor. There can be advantages to going the independent contractor route.
For starters, you don’t have to withhold taxes from the worker’s check, and you don’t have to pay any Social Security tax. Your only responsibility is to complete a Form 1099-MISC if you pay the person $600 or more during the year.
Also, you
