Am I an Employee or an Independent Contractor?
Knowing where you fall matters a lot when it comes to filing your taxes.
Specifically, if you’re an employee, the company you’re working for is responsible for withholding taxes throughout the year, as well as costs like the employer’s share of Social Security and unemployment taxes. If you’re an independent contractor, you’ll need to be paying quarterly taxes and will be fully responsible for those additional tax costs.
It's not as easy as just looking at how many hours you work for a company. In fact, it’s looking at multiple factors related to the nature of your relationship and who has more control in the situation. Some situations may be very clear, while others may not have a definitive answer.
The factors below involved in determining your relationship with the people you work for:
If you are in a situation where you do not feel like you are clearly falling into one side or the other, I recommend consulting an accountant for input or if you want to get super formally. This may be the only way to get a definitive answer.
Irvine Tax Solutions is located in Irvine, CA. We provide professional tax planning and other tax services.
Contact us today via email@example.com or call us (949) 356-0840