As a small business owner you may hire people as independent contractors or as employees. There are rules that will help you determine how to classify the people you hire. This will affect how much you pay in taxes, whether you need to withhold from your workers paychecks and what tax documents you need to file.
Here are some things every business owner should know about hiring people as independent contractors versus hiring them as employees:
1. The IRS uses three characteristics to determine the relationship between businesses and workers:
" Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
" Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job.
" Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
2. If you can direct or control only the result of the work done -- and not the means and methods of accomplishing the result -- then your workers are probably independent contractors.
3. Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
4. Workers can avoid higher tax bills and lost benefits if they know their proper status.
5. Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
North Dakota Contract with Veterinarian Assistant as Independent Contractor with Provisions for Termination with or without Cause In the state of North Dakota, a Contract with a Veterinarian Assistant as an Independent Contractor with Provisions for Termination with or without Cause outlines the terms and conditions of the working relationship between a veterinarian clinic or hospital and a veterinarian assistant functioning as an independent contractor. This contract aims to establish a clear understanding of expectations, responsibilities, and rights for both parties involved. It is important to note that there might be variations in the specific types of contracts used by different clinics or hospitals within North Dakota. Key Provisions of the Contract: 1. Identification of the Parties: The contract will clearly state the names and contact information of the veterinarian clinic or hospital (referred to as the "practice") and the veterinarian assistant (referred to as the "contractor"). Any other relevant legal entities or individuals involved may also be identified. 2. Scope of Services: The contract will outline the specific duties and responsibilities expected from the veterinarian assistant. This may include assisting with animal examinations, anesthesia administration, surgical procedures, laboratory work, patient care, record-keeping, and other related tasks typically performed by a veterinarian assistant. 3. Independent Contractor Relationship: The contract should establish that the veterinarian assistant is an independent contractor and not an employee of the practice. This means that the veterinarian assistant is responsible for their own taxes, insurance, and benefits, and that the practice does not control the contractor's work schedule or methods. 4. Compensation and Payment: The contract will detail the payment structure for the veterinarian assistant's services. This may include an hourly rate, per diem payment, or a percentage of fees charged for services rendered. The payment frequency and method should also be specified. 5. Termination: The contract will include provisions outlining the conditions and procedures for termination, both with cause and without cause. "With cause" termination may occur in cases of breach of contract, negligence, unprofessional behavior, or other specified reasons. "Without cause" termination may be at the discretion of either party, typically with sufficient notice provided. 6. Notice Period: The contract may include a notice period that must be given by either party before termination. This ensures that both the practice and the veterinarian assistant have a reasonable time to adjust their obligations and find alternative arrangements if termination occurs. 7. Confidentiality and Non-Disclosure: The contract may include provisions that require the veterinarian assistant to maintain confidentiality of patient records, business practices, trade secrets, client information, and other sensitive information obtained during the course of their work. 8. Indemnification and Liability: The contract may include clauses that clarify the responsibility and liability of each party for any damages, injuries, or losses incurred as a result of the veterinarian assistant's actions or omissions while fulfilling their contractual duties. It is important for both the practice and the veterinarian assistant to review and understand the terms of the contract thoroughly before signing. If there are any concerns or points of negotiation, legal advice from an attorney experienced in veterinary law is advisable to ensure the contract adequately protects the interests of both parties.
