This Simple Difference Could Cost You Thousands in Taxes Take the time to clearly define your employees and subcontractors.
By Mark J. Kohler •
Opinions expressed by Entrepreneur contributors are their own.
What's the difference between an employee and a subcontractor?
Entrepreneur Network partner Mark J. Kohler understands why business owners hate asking this question: It's tedious. Rather than properly examine the difference, many business owners choose instead to take a shortcut and simply label everyone in question a subcontractor, giving them a 1099 tax form and washing their hands of the whole situation.
However, being sloppy on state and federal tax forms can be dangerous. If your subcontractors turn out to be employeees instead, you could be on the hook for a lot more money than you realize.
Click play to learn about how you can tell the difference between an employee and a subcontractor and save yourself the time, energy and money that cutting corners could cost in the long run.
Related: Should You Invest in a Self-Employed Pension?
Entrepreneur Network is a premium video network providing entertainment, education and inspiration from successful entrepreneurs and thought leaders. We provide expertise and opportunities to accelerate brand growth and effectively monetize video and audio content distributed across all digital platforms for the business genre.
EN is partnered with hundreds of top YouTube channels in the business vertical. Watch video from our network partners on demand on Amazon Fire, Roku, Apple TV and the Entrepreneur App available on iOS and Android devices.
Click here to become a part of this growing video network.
