Adding staff

[Douglas Peterson]

To Fellow Investors,

At what point in your business did you or would you choose to add part or full-time staff instead of using independent contractors?

What position did you or would you hire first?

Thanks for your thoughts,
Doug Peterson

[Steven Hamilton II]

Originally posted by Karen Rittenhouse:

@Steven Hamilton II I've had more than one CPA tell me that they are, in fact, audited more per their personal experience with clients.
Reason: most people don't understand how differently they must treat an independent contractor vs. an employee. They simply believe it is a cheaper and easier way for them to hire. Because they are not following IRS requirements, they are a pretty easy target for audit fines.
May not be an IRS stated rule, but when CPAs in different states have had the same experience, I took notice.

@Karen Rittenhouse ,

In my experience I see it quite equally. Just because they have contract workers does not mean they are not following requirements. The only reason penalties happen is if the employer IS NOT following the tax code.

Those who can have independent contractors rightfully should do it that way and save the money and extra filing requirements.

@Rob K. ,

Consider using QuickBooks payroll. They have different options depending upon how much you want to do or not do. They can file the returns or prompt you to file them.