Contractor Vs. Employee
Under the common law test, a worker is an employee if the purchaser of that worker's service has the right to direct or control the worker, both as to the final results and as to the details if when, where and how the work is done. Control need not actually be exercised; rather, if the service recipient has the right to control, employment may be shown. 1.1NSTRUCTION: An Employee receives instructions about when, where and how the work is to be performed.
Employee or Independent Contractor
Employee or Independent Contractor? In order for a business owner to know how to treat payments made to workers for services, he or she must first know the business relationship that exists between the business and the person performing the services. A worker's status determines what taxes are paid and who is responsible for reporting and paying those taxes.
Hobby Vs. Business
Hobby or Business? If an individual partnership, estate, trust, or an S corporation engages in an activity that is not conducted as a for-profit business, deductions are limited to the amount of income from the activity. This rule does not apply to corporations, other than S corporations. If an activity is considered a for-profit business, deductions can exceed income, allowing the resulting loss to offset other income.
Limited Liability Companies
Limited Liability Companies (LLCs) What is a Limited Liability Company? A limited liability company (LLC) is a business entity organized in the United States under state law. Unlike a partnership, all of the members of an LLC have limited personal liability for its debts. An LLC may be classified for federal income tax purposes as a partnership, corporation, or an entity disregarded as separate from its owner.
New Hire Reporting
New Hire Reporting- Quick References Guide EMPLOYER RESPONSIBILITIES: Report new hires or rehires within 20 calendar days. Respond to Verification of Employment letters.
Quick References Guide for Texas Employers EMPLOYER RESPONSIBILITIES: Report new hires or rehires within 20 calendar days. Respond to Verification of Employment letters.