Before you can calculate your payroll tax liabilities, you must first determine which of the people who work for you, if any, are "employees" for whom you must withhold and pay taxes. If none of your workers are classified as employees, you generally won't have to worry about payroll taxes at all!
Each federal and state law imposing a payroll tax has its own definition of the types of workers to which the tax applies. However, as a practical matter, the basic governing standard under all of these laws is whether the individual who performs services for you is properly characterized as an employee, as opposed to an independent contractor, under so-called "common law rules."
Who Are Your Taxable Workers?
Back to Business Resource >>
|
