Exploring Client Advisory Services - Independent Contractors vs Employees

Overview

As gig workers, remote employees, and hybrid working environments have become more commonplace, the tax rules pertaining to independent contractors and employees have become more complex. If someone can work whenever they want, are they still an employee? How are expense reimbursements reported? And most importantly, what happens if a contractor should really be classified as an employee? In this course, we will discuss these issues, as well as some common tax reporting issues. Finally, we will discuss recent tax legislation in this area, including changes to the electronic filing requirements.

Highlights

• Why care about worker classification?
• 3 Categories of Factors: Employee vs Contractor
• Voluntary Classification Settlement Program
• Hiring New Employees
• Hiring New Contractors
• Backup Withholding
• Expense Reimbursements
• Accountable Plans
• Types of 1099s
• Taxation of Scholarships
• Electronic Filing Thresholds for 1099s
• Summing It Up

Prerequisites

None

Designed For

Tax practitioners, small business owners, and other accountants looking to serve their companies or clients in the area of payroll services

Objectives

• Recall the 3 determination categories (incorporating the 20 historical factors) that the IRS uses to determine employees versus independent contractors
• Identify the basic tax forms needed when hiring employees and independent contractors
• Recognize the different types of 1099 forms
• State the tax implications of scholarships

Preparation

None

Notice

This is a self-study/on demand course offered by a 3rd party vendor and will not be accessible in the My Upcoming CPE section of the ISCPA website. Course access information will be emailed directly to you by Peters Professional Education (PPE). The course expires one year from the purchase date.