Independent Contractors: A money saver? Or an audit trigger?

Independent contractors are great to have: You can bring them in when you need them and they’re highly proficient. When you don’t need them, they’re not taking up office space and getting paid for checking Facebook. For that reason, independent contractors are ideal to help you save money (spend only when you need to) while getting great quality service (because they usually know what they are doing). There are fewer hassles when it comes to insurance, healthcare, and other employee-related expenses.

But independent contractors might now trigger an audit. Over the next few years, as the US government looks for ways to find people who are avoiding paying taxes, they will be looking closely at independent contractor status workers and identifying times when businesses have an independent contractor who really should be classified as an employee.

The article that brought it to our attention was this short one at BusinessInsider.com and they reference this page at the IRS site which outlines the difference between an independent contractor and an employee.

If you’re legitimately hiring independent contractors to do the work, you’re probably in the clear. If you’re trying to avoid paying taxes and have employees that you’re calling independent contractors, you might have some explaining to do.

Take a moment to review the status of the people working for you. If they are independent contractors, check them against the criteria listed on the IRS site and see if you can clarify and document the reason that they are independent contractors instead of employees.

Jessica Routier, IAC-EZ

Giving back report

Each month, a portion of the proceeds from new customers who sign up is donated to a charitable organization highlighted in that month. In December, the organization that received the donation was Cancer Research Institute.

Each year, cancer claims the lives of over 7 million people, and that number is rising so dramatically that it’s expected to get as high as 18 million per year over the next 2 decades. Something must be done!

Some cancer-related organizations work at education or improving the lives of those who have been affected by cancer; those are important causes, too, and we supported those with a donation in February last year. But CRI was chosen this year because the money raised goes towards supporting laboratory research to find a cure for cancer.

In December, thanks to the new sign-ups, we were able to give $214 to Cancer Research Institute for laboratory research.

Jessica Routier, IAC-EZ

Giving back in December

This month, a portion of the proceeds from new subscribers will be sent to the Cancer Research Institute. According to a video on their website, 7 million people die each year from cancer but it’s believed that it could get as high as 18 million people per year within the next 2 decades. Those are scary statistics and every single one of us has been affected by cancer – perhaps diagnosed in a friend or loved one.

The Cancer Research Institute focus on laboratory research in two areas: To improve cancer screening to help diagnose cancer sooner and to develop immune-based cancer cures. Cancer devastates, but with the help of organizations like the Cancer Research Institute, we can make progress.

We look forward to donating a portion of the proceeds from December’s new subscribers to this worthy cause.

Jessica Routier, IAC-EZ

Giving back in November

Each month we give back a portion of the proceeds from new subscribers who register in that month. In November, we were happy to give $150 to the Disabled American Veterans Charitable Service Trust. This trust gives care and assistance to veterans with post-traumatic stress, substance addictions, or blind or disabled veterans who need help regaining independence. Read more about the Disabled American Veterans Charitable Service Trust here.

Thank you to our troops who protect our freedom, and thank you to November’s new subscribers, a portion of whose initial registration was donated to the service trust.

Jesica Routier, IAC-EZ