Get FL RTS-6061 2013

The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.

An independent contractor is a person or entity contracted to perform work for or provide services to another entity as a nonemployee. As a result, independent contractors must pay their own Social Security and Medicare taxes. The payer must correctly classify each payee as either an independent contractor or employee.

Basically, an independent contractor is an independent business person who runs his or her own business but who does work for another business. An employee is hired by a company to perform specific work at the direction of the employer.

A business may pay an independent contractor and an employee for the same or similar work, but there are important legal differences between the two. For the employee, the company withholds income tax, Social Security, and Medicare from wages paid. For the independent contractor, the company does not withhold taxes.

What is a 1099 Employee? A 1099 employee is one that doesn't fall under normal employment classification rules. Independent contractors are 1099 employees. Instead of having a permanent worker that takes direction from the company, your business would use an independent contractor who works under their own guidance.

Independent contractors provide goods or services according to the terms of a contract they have negotiated with an employer. Independent contractors are not employees, and therefore they are not covered under most federal employment statutes.

You are not an independent contractor if you perform services that can be controlled by an employer -- what will be done and how it will be done, the IRS rule says. ... And many employers increasingly are requiring independent contractors to behave like employees.

Independent contractors are not subject to minimum wages, overtime compensation, employee benefits or tax withholding, so don't include this language. Promises of future employment. ... Independent contractors are not subject to workers' compensation in the event of injury. Dress code and disciplinary policies.

You provide equipment or supplies: A hallmark of independent contractors is the fact they supply their own tools, equipment and supplies. After all, contractors are, by definition, independent professionals.

A business may pay an independent contractor and an employee for the same or similar work, but there are important legal differences between the two. For the employee, the company withholds income tax, Social Security, and Medicare from wages paid. For the independent contractor, the company does not withhold taxes.

A business may pay an independent contractor and an employee for the same or similar work, but there are important legal differences between the two. For the employee, the company withholds income tax, Social Security, and Medicare from wages paid. For the independent contractor, the company does not withhold taxes.

According to netPolarity Misclassifying employees as independent contractors and failing to provide W-2 forms can subject an employer to back taxes of as much as 41.5%* of the contractors' wages, according to the IRS. And these penalties can go back for three years.

What is a 1099 Employee? A 1099 employee is one that doesn't fall under normal employment classification rules. Independent contractors are 1099 employees. Instead of having a permanent worker that takes direction from the company, your business would use an independent contractor who works under their own guidance.

In Florida, state UI tax is one of the primary taxes that employers must pay. Unlike most other states, Florida does not have state withholding taxes.

Unemployment tax rates for experienced employers range from 0.1 percent to 5.4 percent, and the tax rate for new employers is 2.7 percent, the state said Dec. 14.