SAN DIEGO PAYROLL TAX AUDIT LAWYERS
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According to tax laws in California and across the nation, employers are required to adhere to complex laws and regulations pertaining to payroll responsibilities. Because payroll tax matters are incredibly complex and highly involved, it will be wise to speak with our San Diego payroll tax lawyers. At Milikowsky Tax Law, we are committed to making certain your tax liabilities are as low as possible while keeping the integrity of your bottom line.
FACTORS THAT DETERMINE EMPLOYMENT CLASSIFICATION
Generally, professionals who are in an independent trade or business and offer their services to the general public may be classified as “independent contractors.” Typically, the Internal Revenue Service (IRS) utilizes 20 factors to determine if an employer-employee relationship exists. In order to properly classify workers, the IRS will typically analyze a variety of factors. It will be important for business owners as well as employers to know these areas of classification to avoid costly issues with the IRS in the future.
The IRS assesses three categories:
- Behavioral: Does the company control or have the right to control what, how, and when the worker does their job?
- Financial: Are the business aspects of the worker’s job controlled by the payer? Are they paid hourly, weekly, commission, or by the job? Are expenses reimbursed? Who provides the tools and supplies? Can the worker realize both a profit and / or a loss?
- Type of relationship: Are there written contracts or employee benefits? Is the work performed a key aspect of the business? Can the worker work for more than one company at the same time?
Do not make the mistake of misclassifying your employees! If your workers are reclassified as employees, your company may be liable for FICA taxes (both employer and employee’s portion), FUTA, federal and state income taxes, trust fund recovery penalties under IRC section 6672, worker’s compensation claims, and lawsuits by employees who demand full employee benefits for the time they were misclassified as independent contractors.
Our skilled San Diego IRS attorneys are ready to make certain you adhere to all tax regulations.
CONSULT MILIKOWSKY TAX LAW TODAY
At Milikowsky Tax Law, we completely understand just how overwhelming tax issues can be. Our San Diego payroll tax lawyers are ready to come to your side and guide you through every step of the process. Due to our extensive litigation experience in all levels of court, you can be confident knowing that your particular payroll issue is being handled by a seasoned professional. If you are an officer, director or shareholder of a company that has a payroll tax balance, you must contact our offices right away.