Sign up for our FREE Monthly Email Newsletter
In addition to keeping in the financial know, you may be interested in checking your credit score and report.
¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.
²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.
³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.
4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.
Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.
One of the most basic steps of the payroll process is distinguishing between employees and independent contractors. However, employers are sometimes foggy on what differentiates the two types of workers. Employers should have a solid idea of these concepts because there are significant tax implications….
One of the most basic steps of the payroll process is distinguishing between employees and independent contractors. However, employers are sometimes foggy on what differentiates the two types of workers. Employers should have a solid idea of these concepts because there are significant tax implications.
Independent contractors are becoming more and more popular among companies because they serve an important function. Just as you might not need a full-time doctor or lawyer on staff, small businesses are starting to use independent contractors for marketing, design, and other roles that used to be occupied by a full-time person.
Our data at SurePayroll from surveying small business owners has shown a gradual increase in the percentage of 1099 workers since 2004, rising from nearly 2.9 percent to 6.7 percent.
Let’s look at how an independent contractor might affect your small business payroll:
There are two ways an employer can go about determining a worker’s status. One is the Common Law Test, which asks how independent the employee is based on the points discussed above. However, there are exceptions, and employers can also use the Reasonable Basis Test, which allows them to designate someone as an independent contractor for tax purposes if there is a reasonable basis to do so.
A worker or employer may request the IRS’s determination of the worker’s status by filing Form SS-8.
The next question becomes how you decide what kind of worker you want to hire. Before you make the decision, consider a few more factors:
Finally, remember that even though you are not required to withhold taxes on an independent contractor, you still must fill out the Form 1099-MISC. If you have questions on this, be sure to talk with an accountant or your payroll services provider.
Michael Alter is president and CEO of SurePayroll, a wholly owned subsidiary of Paychex. SurePayroll provides payroll services for small businesses.
Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.