Can I pay some employees as independent contractors to save taxes?
If you are using the word employee, no. This is always a hot topic with the IRS. Generally, individuals you hire are treated as employees subject to income tax withholding and unemployment taxes. There are cases where individuals are legitimately classified as independent contractors, responsible for their own taxes, insurance and tools. We can provide a list of questions that will help you make the determination. Since our role is to keep our clients in compliance we always recommend consulting a CPA or an attorney if you still are unsure about a classification.
