If someone is an employee of your business, you must withhold and pay employer federal and state income taxes, Social Security and Medicare taxes and unemployment tax on the wages paid to an employee. employee?Īs an employer, your main concern lies in compliance. independent contractors is important to government compliance.ĭespite such an important classification, many employers do not know what distinguishes one from the other.
If you own a business, identifying those doing work for you as employees vs.
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