| Getting audited by the IRS is no fun to think | | | | of potential IRS headaches its worth every dollar. |
| about much less go through. That is the fear | | | | Then depending on how contractors are organized |
| however for many independent contractors or | | | | they can receive a W2 at the end of the year to |
| people commonly referred to as 1099s. The IRS | | | | simply give to their accountant. |
| has been kind enough to post a video online about | | | | Now many people have accountants they work |
| what that process is. Enjoy: | | | | very well with. They can still keep that relationship |
| To further ease these concerns, 1099s or | | | | but this actually makes the accountant's job a little |
| independent contractors can also set up | | | | bit easier. Also many of the payroll firms will take |
| relationships with payroll service companies. These | | | | on any liability if there's a discrepancy in the taxes |
| companies work pretty simply. After setting up | | | | that were paid. Accountants don't do that. |
| an account and with the contractor's permission, | | | | Finally, as an added incentive many of the payroll |
| the payroll company takes money that they earn | | | | companies offer benefits like health insurance and |
| out of their business account and pays any taxes | | | | retirement planning. |
| or other obligations they may have. They then | | | | So if you fear the IRS knocking on your door for |
| deposit the remaining money into the contractor's | | | | an audit, the attached video and setting up a |
| personal checking or savings account. | | | | relationship with a payroll service company can |
| They take a fee for this of course. But to get rid | | | | offer you great peace of mind. |