QUESTION

I operate a business based in PA and I would like to hire w2 employees w/o the tax burden. Is that possible to hire w2 with the tax burden?

Asked on Aug 08th, 2012 on Employment Contracts - Pennsylvania
More details to this question:
I operate a business based in PA and I would like to hire w2 employees, but I don''t want to pay taxes on that employee. We service customers but don''t make enough of a profit to pay taxes on w2 employees. We have 1099 contractors and they work fine for us. Is it possible to hire w2 employees without the tax burden?
Report Abuse

1 ANSWER

Generally speaking, no.  If an individual is an employee, they must be paid on a W2 and taxes must be withheld.  Also be careful.... just because you label someone as an "independent contractor" does not mean that they are.  If you are improperly classifying an employee as an independent contractor, you could be liable for back taxes, penalties and interest for failing to withhold, failing to obtain workers' compensation insurance and potentially more.  The determination as to whether an individual is an employee or independent contractor is a balancing test of many different factors, which an agency or court will look at.   Michael J. Davey, Esq. Eckell Sparks Law Firm 344 West Front Street, Media, PA 19063 mdavey@eckellsparks.com  (610) 565-3700
Answered on Aug 16th, 2012 at 3:51 PM

Report Abuse

Ask a Lawyer

Consumers can use this platform to pose legal questions to real lawyers and receive free insights.

Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.

0 out of 150 characters