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A statutory employee is an independent contractor under American common law who is treated as an employee, by statute, for purposes of tax withholdings. [1] For a standard independent contractor, an employer cannot withhold taxes. Statutory employees are also permitted to deduct work-related expenses on IRS Schedule C instead of Schedule A in ...
The distinction between independent contractor and employee is an important one in the United States, as the costs for business owners to maintain employees are significantly higher than the costs associated with hiring independent contractors, due to federal and state requirements for employers to pay FICA (Social Security and Medicare taxes) and unemployment taxes on received income for ...
Employment contract. An employment contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an "employee" and an "employer". It has arisen out of the old master-servant law, used before the 20th century.
Independent contractor status grants workers greater liberty to choose their schedules, hours, mobility, and clientele, whereas the "employee" designation limits these freedoms in exchange for ...
Unlike an employee, the independent contractor must pay self-employment tax on income minus deductions. The self-employment tax rate is 12.4% for Social Security and 2.9% for Medicare taxes as a ...
Here are the top 11 things you need to know before (or even after) you sign an Independent Contractor Agreement: Many employers try to save money on taxes and escape liability under employment ...
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