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.
Title: Understanding Wisconsin Contract with Veterinarian Assistant as Independent Contractor: Provisions for Termination with or without Cause Introduction: In Wisconsin, a contract drafted between a veterinarian clinic or hospital and a veterinarian assistant plays a crucial role in establishing a mutually beneficial working relationship. This article explores the details of a Wisconsin Contract with a Veterinarian Assistant as an Independent Contractor, focusing on the provisions for termination with or without cause. Additionally, different types of contracts pertaining to this arrangement are discussed as well. Keywords: Wisconsin contract, veterinarian assistant, independent contractor, termination with cause, termination without cause 1. Overview of the Wisconsin Contract with Veterinarian Assistant: The Wisconsin Contract with a Veterinarian Assistant as an Independent Contractor is a legally binding agreement that outlines the rights, responsibilities, and expectations of both parties involved. This contract ensures clarity and provides a framework for a professional working relationship. 2. Provisions for Termination: a. Termination with Cause: — This provision allows termination of the contract when a veterinarian assistant fails to fulfill their duties or breaches the terms of the agreement. — Examples of causes for termination may include negligence, misconduct, unauthorized disclosure of confidential information, and unethical behavior. — The contract should clearly outline the specific steps that should be taken before termination with cause, such as written notice and an opportunity for the veterinarian assistant to rectify the situation. — It is recommended to seek legal advice before initiating a termination with cause to ensure compliance with Wisconsin labor laws. b. Termination without Cause: — This provision allows either party to terminate the contract for reasons not related to misconduct or any breach of terms. — Termination without cause typically requires a written notice period specified in the contract. — This provision allows flexibility for either party to terminate the agreement if circumstances change or if the working relationship no longer aligns with their objectives or interests. 3. Types of Wisconsin Contracts with Veterinarian Assistant as Independent Contractor: a. Fixed Duration Contract: — This type of contract specifies a predetermined start and end date, clearly defining the length of the working relationship. — Termination within the fixed duration may still be possible with proper adherence to termination provisions mentioned in the contract. b. At-Will Contract: — An at-will contract does not specify a fixed duration and allows either party to terminate the agreement at any time, with or without cause. — This type of contract provides greater flexibility but may require specific notice periods for termination. Conclusion: Understanding the provisions for termination with or without cause in a Wisconsin Contract with a Veterinarian Assistant as an Independent Contractor is crucial for both the veterinarian clinic and the assistant. By incorporating these provisions, both parties can ensure a smooth working relationship based on trust, accountability, and compliance with legal requirements. It is advised to consult legal professionals and tailor the contract to meet specific needs and preferences.
