The Payroll Factory, Inc. March 2022 Newsletter
Welcome to March, the height of the tax season in the
accounting profession. One of the
hottest topics in the payroll world and with your clients is defining an
individual as either an Employee receiving a W-2 statement or as an Independent
Contractor receiving a 1099 statement.
The IRS has put together a template that organizations and
businesses should consider when making that determination. These three categories include:
1.
Behavioral:
Does the entity control/dictate how the employee does his or her job.
2.
Financial:
Does the entity define how the employee is getting paid and other
ancillary payments such as reimbursement and expenses.
3.
Type of Relationship: Does the employer provide a written contract
or employee benefits? Is the work a key
part of the business?
Pennsylvania Department of Revenue requires a Pennsylvania
employer who provides a 1099 to a non-resident to withhold the Pennsylvania
Earned Income Tax at the 3.07% tax rate.
Please feel free to distribute to your staff and clients as
well. As always “whatever it takes,” I
look forward to working with you, your associates and above all your clients.
Thank you very much and have a successful tax season.
Steve Sabel
Senior Account Relationship Manager
The Payroll Factory, Inc.
18 East Lancaster Avenue
Malvern, Pennsylvania 19355
267-907-4179 cell
steve@prfusa.com
www.thepayrollfactory.com
