Tag Archives: seasonal employees

Benefits of e-filing 1099 forms

File taxes online

How much time do you spend yearly trying to figure out complicated IRS 1099 forms to complete and file your taxes? Does it seem like it takes more time every single year because the 1099 forms change? After all that, you still have the hassle of shoving those 1099 forms into an envelope and mailing them, and you don’t get confirmation that your return was received until you get your refund or receive word that you’ve made a mistake. There’s an easier way!
E-Filing is a way for tax payers to file their 1099 forms in a quick and safe manner and eliminates all the pesky forms associated with traditional paper filing. No more worries about postage or waiting in line to mail your return. The internet may seem intimidating, but it’s no more intimidating than filling out numerous forms and stressing over whether or not you’ve forgotten something.
E-filing 1099 forms (in general and e-filing 1099-MISC form in particular) is often more accurate than filing a paper return, because most of the time the online program you’re using for your return will alert you if you’ve made mistakes or omitted something. It’s also easier, as the majority of the programs will walk you through filing step by step and ask questions to ensure you’re getting the best return possible.
Not only is e-filing easier, but it’s also quite cost effective. Most tax filing companies charge only minimal fees for this service. Nine times out of ten, it’s faster and easier to finish your tax return and get back to your life.
Electronically filing your taxes also eliminates the need to know the most current tax rules, because the programs are designed to know all the new information for the current tax year. Not having to be an amateur accountant when filing your return is definitely worth any cost incurred from e-filing 1099 forms.
Another important feature of e-filing is that most often the e-file provider mails out a paper copy to your recipients, thus eliminating the hassle of doing it yourself.So when looking to e-file your 1099 and 1098 forms, look no further than our website. We offer competitive pricing and convenience! Onlinefiletaxes.com offers the most cost effective way to efile your 1099, 1098 and W-2 forms.

Resources:

http://www.ehow.com/list_5966803_advantages-disadvantages-electronic-filing-systems.html

http://www.revenue.ie/en/online/ros/advantages-e-filing.html

http://www.onlinefiletaxes.com/LearnMore.aspx

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When to Hire and When to Contract

In our last blog, we reviewed the differences between an independent contractor and a standard File employee taxesemployee.  In this blog you will learn which type best suits your needs.

You’re a small business owner and you’ve become quite successful. You have a small staff that is already working full-or part-time, but you’ve got some small specialized tasks that need accomplished. Your secretary is available to finish what needs to be done, but you also realize she is not particularly creative. At this point, you know it isn’t exactly fiscally responsible to hire another employee, but you need some more help.

It sounds like you may need an independent contractor.  Basically, an independent contractor comes into your company when you have a finite amount of work that needs to be finished.  You may also have budget constraints that make hiring another employee impossible.  With an IC, they are typically paid by the job and on a short term basis, so most of the time you don’t pay high insurance premiums for them.

Another advantage to the IC is that they typically supply their own tools.  There’s very little need to supply office space, supplies, or utilities.  Also, an IC is responsible for his own tax liability thus alleviating the necessity of filing extensive forms with the IRS.  Essentially, an IC is brought into a company when there is specialized work that needs to be done and the amount of work does not justify bringing on another employee.

An employee is brought on when the workload has become too much for the company, the budget allows for it, and the amount of work will be ongoing.  If you expect the boom in business to be temporary, then a seasonal employee sounds like it may be a good fit.  However, if you have some press releases that need written, or a new blurb written for your advertisements, an independent contractor is most likely going to be the right fit for your business.

As always, consult with an accountant or a tax attorney before making any tax decisions for your company.  For any independent contractors in need of 1099 assistance, please contact us!

Just as for your employees you need to report salary paid on Form W-2, for contractors you will need to file form 1099-MISC to report payments made during the year. Use OnlineFileTaxes.com for all your 1099, 1098, or W-2 filing needs.

Resources:
Forbes
IRS
Legalzoom
SBA

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Your business is up and running and you’re finding yourself getting busy. You know you need morehelp, but you’re unsure if you want to hire an employee or bring in an independent contractor.  You might also be wondering the difference between the two. It’s very important to discern the status of these workers as that status makes all the difference for your company and your taxes.
1099
 We’ve compiled a list of the primary differences between the two and have listed them here for your reference. We hope you find it helpful as you decide which is best for your business.

  1. By law, you’re required to withhold taxes for an employee. These include Social Security and Medicare taxes as well as the unemployment taxes you’ll need to pay for an employee.  There are no such requirements for an independent contractor.
  2. An employee is obligated to follow the rules of the company about when they work, how they work, and where they work.  An independent contractor provides a service but is given little instruction about how or where to work.
  3. An employee rarely has the opportunity to hire people to work under him if the workload is too intensive, where as an independent contractor has that ability.
  4. An employee is typically paid an hourly wage or a salary with a specified pay schedule.  An independent contractor is paid for the service he provides in a lump sum.
  5. For an employee to travel or go above and beyond normal duties, you, as the employer must reimburse the employee for mileage or travel expenses.  An independent contractor incurs their own expenses as those are typically built into the fees for the project.
  6. Unless otherwise approved by you, an employee typically works only for you.  An independent contractor may work for many different people and/or businesses.
  7. For an employee, the employer is required to provide the equipment needed to get fulfill the job duties whereas independent contractors provide their own equipment.

Hiring an employee or an independent contractor comes down to a matter of preference. And there are many nuances to each of these factors. We recommend consulting an attorney for specific legal advice and guidance before proceeding.

Should you decide on independent contractor, be sure to check out the services we offer for filing the required tax documentation – a 1099.

Resources:
IRS
Legalzoom
MDC

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Hiring a Seasonal Employee: Know the Rules First

Rajeev blog photoIf you’ve got a business operating on limited hours, then chances are you’ll need to hire a seasonal employee. Before you hire, make sure you’re educated! You don’t want to hire someone and have to redo all of the paperwork or be responsible for the taxes you didn’t take out.
Here are some tips and tricks to help you out when tax seasons rolls around again.

1. Make all employees responsible for filling out the proper tax forms for their type of employment. If you have questions, the IRS and DOL have incredibly user friendly websites that can help you determine what forms you will need for each type of potential hire.

2. Seasonal is a time limit, not necessarily an employment status. Seasonal employees are able to work full time hours. You are able to utilize your seasonal staff for full time labor, as long as you comply with labor laws.

3. Within the Department of Labor, seasonal employees have the same rights as regular employees. You are still subject to wage laws with a seasonal employee. You don’t want to be responsible for an unfair workplace violation due to mistreatment of a seasonal employee.

4. Know the difference between a seasonal employee and an independent contractor. A seasonal employee is one who is hired into your company on a seasonal basis, for example: spring harvest season or the end of year holidays. An independent contractor is someone who works as needed for a company under terms specified in a contract or agreement.

5. Ensure that your seasonal hire is not surprised by the termination of their position at the end of their season. Avoid the snafu of wrongful termination by supplying your seasonal employee with clear cut terms and conditions regarding the basis of their hiring within your company.

All too often, companies can fall victim to tax complications as a result of hiring seasonal employees. Before hiring, do your research using all of the options afforded to you including the IRS and DOL websites. Don’t get caught up in complicated legal battles and owing taxes for employees that you under-taxed. As always the best offense is a good defense. Know your rights and know the rights of your employees. Make sure that you issue a form 1099-MISC at the end of the year to all your contractors, just like you would issue a W-2 to all your employees.

When it comes to tax time, contact us for assistance with your e-filing tax needs.

Sources:

http://smallbusiness.chron.com/ways-pay-seasonal-employees-13816.html

http://www.dol.gov/dol/topic/workhours/seasonalemployment.htm

http://www.optimum-solutions.com/payroll/part-time-seasonal-and-temporary-employees

http://www.moneythinking.com/2010/12/30/tax-tips-for-seasonal-employees/

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