499: Construction Company Employee Vs. Contractor - What You Need To Know

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 499, And It's About Construction Company Employee Vs. Contractor - What You Need To Know</strong></span></h1> <p><span style="color: #000000;">Depending on the nature of your construction business, you may have workers who are employees or contractors, or you may have both. Each has its merits, but it's important to review which are to meet your tax obligations.<br /> <br /> With so much discussion about employees, payroll, and payroll taxes, you may feel like missing out by not hiring many employees. The reality is that as a small business owner, you do not have to hire employees.<br /> <br /> To hire or not to hire employees is one of the few optional things where the business owner can choose, change their mind, and change direction as needed.<br /> <br /> When you have an employee, you must withhold income tax and report on additional benefits. Contractors generally look after their tax obligations.</span></p> <p><span style="font-weight: bold;">Is there another way?</span><br /> <br /> Yes - to outsource most of the mundane low-value tasks that take time away from what you are skilled in. As the owner, you can use that time to meet with clients, create estimates, collect money, pay bills, and have a little left over.<br /> <br /> It's against the law to treat an employee as a contractor. Significant penalties apply if you do, so it's essential to get it right.<br /> <br /> <span style="font-weight: bold;">The simplest way to remember is:</span><br /> <br /> An employee works in your business and is part of your business.<br /> <br /> A contractor is running their own business.<br /> <br /> But how can you be sure that you've got an employee or a contractor on your hands, especially with remote work blurring the lines between employees and contractors?<br /> <br /> Does it come to the point that you should be hiring a worker as an employee when you thought they were a contractor?<br /> <br /> <span style="fon