As everyone scrambles to make payroll and keep business running it's important to hold onto as much cash as possible. Over the years you've grown and scaled your business, eagerly taking on more work and incurring more expenses. One common issue all business owners face as they grow is the inability to monitor every microscopic detail of their business; subscriptions for advertising fees, marketing costs, website hosting, computer software expenses and many others that were
So what constitutes an independent contractor versus an employee?
Obviously health insurance and payroll taxes are key indicators but the IRS has a little more guidance on making the determination. It may seem trivial that if you're not paying health insurance, paid time off or payroll taxes than it must be an independent contractor but use caution; an independent contractor could challenge that they were in fact an employee and you could be liable for hefty back-due taxes
Did you buy equipment in 20hile the idea of expensing it all immediately to save on taxes sounds enticing there are benefits lost and even disadvantages to doing so.
Instead of writing off the entire cost of your asset in the first year, there is a process called "depreciation." The idea behind this is assets have a standard typical life span based on its placement within a category (building, computers, office furniture, automobiles, e.t.c). Rather than deducting th