Contractor or employee? For federal tax purposes this is an important distinction. Worker classification affects how you pay your federal income tax, social security tax and Medicare taxes, and how you file your tax return. If a worker is an employee, then the employer is responsible for withholding income tax and the employee’s portion of Social Security and Medicare tax from amounts paid to the worker. On the other hand, the business is not responsible for any payroll taxes for independent contractors. Join this program as we clarify the difference.
This program is sponsored by the IRS and presented by volunteer lawyers.
Speaker(s): Fred Parker, Lawyer with the firm Gardner Skelton