Contractor or Employee? that is the question...

Whether ‘tis nobler to suffer the slings and arrows of the IRS contractor rules or to take arms with a payroll system…

The rub here is that the IRS and state regulatory agencies are making a renewed effort to enforce the rules regarding the distinction between a contractor and an employee. 

I won’t bore you with all of the details of the “behavioral control”, “financial control” and “type of relationship” rules that the IRS uses to determine the difference between a contractor and employee.  The bottom line is, if you think that one or more of your contractors should probably be treated as employees, you’re probably right. 

And the penalties are significant.

The good news is that “payroll” doesn’t have to be difficult or expensive.  At BALANCED, we provide full-service payroll services and a Do-It-Yourself solution – both of which eliminate the cumbersome forms and expensive payroll services of the past.

(my apologies to Shakespeare for the lame spoof...)