1. What information do I need from an independent contractor?
When you are working with independent contractors make sure to get the proper documentation from them before any work is completed. They need to provide you with a W9 form with either their Employer Identification number or a Social Security Number. Additionally, you should obtain a certificate of insurance from them naming your company as additionally insured as proof of their liability insurance. This protects you and your company from any injury or damage caused by the IC.
2. Can I pay an employee as an independent contractor?
If you have any employee on the payroll you cannot pay them any other way than through payroll. When employees completing duties outside of their normal job description you can offer them a bonus but all the wages paid to them must be included in payroll and need to have the payroll taxes deducted.
3. Is there any way to challenge my assigned SUTA rate? If so, what is the process?
SUTA rates are determined by the length of time you have been an employer, your past taxable payroll and past credits and charges to your account. After 3 years of employment the state will look back and set your rates based on the previous three years. If you have changed your business or feel that your assigned SUTA rate does not accurately reflect your current business state you can challenge the rate. When SUTA rate letters are sent out you must file an appeal, in writing, within fifteen days from the date on the notice (not the date you received the notice). From there the state will contact you regarding a hearing to review your account. If you do not challenge the rate within the 15 day window, the rate becomes final.
4. What are the requirements for salary (exempt) employees?
Salary or exempt employees must meet three basic criteria to qualify. Job titles do not determine exempt status, simply being called a “manager” is not enough.
The criteria are:
1. Receive a salary of not less than $455.00 per week.
2. Regularly supervises two or more other employees and has management as the primary duty of the position.
3. Has genuine input into the job status of other employees (including: hiring, promotions, job assignments and termination)
More details and more in-depth information can be found at the Department of Labor website: http://www.dol.gov/whd/regs/compliance/fairpay/fs17a_overview.pdf
5. Do you offer end-of-year financial consultation and financial preparation or do I need to be a year round client for these services?
Yes! If you are a small business looking for some end of the year financial preparation or consultation we are here for you. We want to provide financial solutions to business of all sizes. If you process your bookkeeping in house and need some help getting things together before tax season we can help. Call our office today to set up a time to meet with our financial advisor.