___________________________________________________________I hope this issue of the Tax Reduction Letter finds you and your family in good health. Warmest good wishes at this difficult time from all of us at the Bradford Tax Institute.___________________________________________________________ If you’re an employer who hires independent contractors, California’s new AB 5 law … [Read more...]
Independent Contractor
Sorted by Date
Dynamex Causing Incorrect W-2 Classifications for Independent Contractors
The California Supreme Court made an important ruling in the Dynamex case. The court’s decision means that you could inadvertently improperly reclassify your independent contractors and make them suffer needlessly. The Dynamex decision and subsequent new California law causes trouble not only in California but throughout the country. If you have independent contractors … [Read more...]
Section 105 Medical Expense Deduction-Plans for Statutory Employees
_________________________________________________Let’s start with a definition. A “statutory employee” is an independent contractor who is treated as an employee by statute for the purposes of tax withholding. _________________________________________________ Are you a “statutory” employee? Then you should know that, if you’re qualified, you can create a Section 105 … [Read more...]
Does moving your W-2 to Schedule C increase your taxes?
If you qualify to report your W-2 wages on Schedule C (to avoid losing your employee business expenses), will you get any credit for the FICA taxes withheld from your W-2? And another question … would you get any credit for the employer matching the FICA taxes? If you believe that a large part of your tax savings could go down the drain (through the additional … [Read more...]
Tax reform punishes W-2 employees — Get even!
The Tax Cuts and Jobs Act that passed recently, created winners and losers. One big loser is the W-2 employee. Why? Because thanks to the new law, W-2 employees’ business expenses are no longer deductible! That’s right. W-2 employees get a zero deduction for legitimate expenses. Which has them shouting, “I’m mad as hell and I’m not taking it any more!” What can you … [Read more...]