Could you be underpaying in taxes?

During this time of year, it appears that retailers and employees are definitely reaping the benefits of their hard work. Between all the returns and the gift cards that are given as gifts, this week is arguably the most profitable week of the year, even though it is the last week of the year.

Nevertheless, with all the money that temporary workers will earn, Uncle Sam will still want his cut. After all, it is the law. But for many temp workers, there may be questions about how they will be taxed, and how much they may owe when tax time comes around in April. While it may remain to be seen the actual taxes that will be paid, it will largely be determined by an employee’s classification; whether they are seen as employees or contractors.

 How is the difference determined? This post will briefly explain. 

Essentially, there are a number of different factors that are considered, including degree of control the employer exerts over the worker and how the work is done. For instance, if there are set hours for the worker, materials and/or training is provided for the worker, and the employer determines how the work is supposed to be done, chances are that the worker will be classified as an employee.

This means that the employer is responsible for paying half of the Social Security and Medicare taxes (otherwise known as FICA) and withholding the amount the worker is responsible for paying.  So if you have questions about how you are classified, your employer, or an experienced employment law attorney, can advise you. 

No Comments

Leave a comment
Comment Information
Email Us For A Response

Contact Us - Free Initial Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Pasadena Office

128 N. Fair Oaks Ave.
Suite 204
Pasadena, CA 91103

Toll Free: 866-457-2590
Phone: 626-585-9600
Fax: 626-577-7079
Pasadena Law Office Map

Downtown Los Angeles Office (Legal Fund)
250 1st Street
Suite 1201
Los Angeles, CA 90012

Phone: 213-785-6999
Los Angeles Law Office Map