Recently I attended a conference, and a few items came up in relation to businesses of which all business owners should be aware.
Worker Misclassification – There are rumblings that the Department of Labor is getting more aggressive about worker misclassification. The IRS will continue to use the familiar 20-factor test. Here are a few pieces of info that came up – tread cautiously:
– Indefinite/permanent working relationships can substantiate an employee.
– If a contractor’s work is integral to the business, they can be treated as employees even if their work is done off-site.
– Supplying their own tools to do the job does not necessarily classify them as a contractor.
– If the contractor works for other businesses, it doesn’t necessarily mean they aren’t your “employee”.
Small Employers Paying For Individual Medical Premiums – Relief for excise tax ended June 30, 2015. As a small employer (under 50 employees) you can be subject to an excise tax up to $100 per day ($36,500 per year) per employee for reimbursing or paying a premium for an employees individual health insurance policy or Medicare premiums.
Greater than 2% S corporation owner/employee is still permitted as an exception to this when treated as wages on W-2.
~ Debby Jacobs, CPA