Independent contractor or employee?

Misclassifying an employee (W2) as an independent contractor (1099) will lead to significant payroll tax penalties.  If the person you have contracted to perform services does not have a business, they may need to be treated as an employee.  The IRS has a 20 point checklist to help you decide the correct classification.  You may also submit form SS-8 to the IRS and allow them to determine the status based on your answers.  Please call your WOB Advisor for additional guidance.