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Employers Urged to Verify Worker Classification for Unemployment Tax

From the Florida Department of Revenue:

Employers should understand how to determine whether a worker is an employee or an independent contractor, so they can correctly include all employees on their Employer’s Quarterly Report (Form UCT-6). The main distinctions are:
An employee is subject to the will and control of the employer. The employer decides what work the employee will do and how the employee will do it. An officer of a corporation who performs services for the corporation is an employee, regardless of whether the officer receives a salary or other compensation.
An independent contractor is not subject to the will and control of the employer. The employer can decide what results are expected from the independent contractor, but cannot control the methods used to accomplish those results.
How the worker is treated, not a written contract or issuance of a 1099, determines whether the worker is an employee or an independent contractor. The Internal Revenue Service has additional information that can help you decide.
Misclassification of workers is not just a tax reporting issue; it also affects claims. If a person files a claim for unemployment compensation and the employer has not been including the person on the quarterly report, this can cause a delay in benefit payments.

By |2010-01-11T15:33:11+00:00January 11th, 2010|Employers, State Taxes|0 Comments

About the Author:

Lauryn Charles owns and manages Accountable Financial Services Group, Inc., founded in July of 2007. Lauryn has many years of experience working with small business owners in the field of accounting, banking, and financial services. An accounting graduate with an MBA in International Business from Florida Atlantic University, Ms. Charles is an expert tax preparer and accountant. She is a Registered Tax Return Preparer as designated by the Internal Revenue Service. Ms. Charles is a member of the Pompano Beach and Deerfield Beach Chamber of Commerce. She is on the board of directors of multiple non-profit organizations, she is the co-founder of Pompano’s Young Professionals, and serves many other charitable organizations in the area.

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