Distinction Between Independent Contractors and Employees" Please respond to the following:
After reviewing the scenario, identify at least three (3) key benefits that you could negotiate with your employer or potential employer that could reduce your tax liability. Provide specific examples of such benefits.
Imagine that a potential employer has given you the opportunity to work as either an employee or an independent contractor. Identify at least three (3) pros and three (3) cons of each option.
Discuss the primary tax consequences or tax deductions of each classification that you believe provide the greatest opportunity to reduce your overall tax liability.
Provide support for your rationale
Preview Container content
In today’s environment, it can be seen that employers are potentially seeking options to which they can arrange to distinguish as to which is more beneficial to them, hiring an independent contractor or employees. Both the options seem to be viable on the work front, but when it comes to taxation, an employer has to decide because it has a huge significance on the costs of the employer. We all know that the employers potentially like to reduce their tax burden as well as reporting requirements. Hence we will evaluate as to what is more beneficial to the employer. The pros and cons of having an employee over independent contractor:
The pros are that the employee can work according to the requirements of the employer as and when the employer wishes to as it has a full supervision over it, employees can generate more work as compared to the independent contractors and that employees can give them additional benefits as they are more inclined towards their firm