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Thursday, Dec. 22

Business Type - Employees vs. Independent Contractors, #107

It is critical that you correctly determine whether the individuals providing services to your business are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. If you incorrectly classify an employee as an independent contractor, you…

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