January 2006
INDEPENDENT
CONTRACTOR VS EMPLOYEE As a home builder, you typically hire many independent contractors for various jobs. Unlike wages paid to employees, you are not required to withhold payroll taxes or income taxes from payments made to an independent contractor. However, the IRS monitors with a watchful eye the way you classify your workers. To be sure the IRS doesn�t think your independent contractors are employees you should be clear on how they define an independent contractor vs an employee.
The IRS defines an employee as someone who can be told what to do
and also how to do it. Distinguishing
between a contractor and an employee is difficult.
To decide, review these categories:
Classifying a worker as an independent contractor or an employee simply requires common sense. For example, an electrician hired to do electrical work in a house is an independent contractor. They are not told what to do and they have a significant investment in their business. On the other hand, a receptionist is an employee. He or she is paid a wage from the business and the business has the right to tell the person how to do the job. For purposes of workers compensation it is very difficult to prove a person is an independent contractor unless they truly are. If you are still unsure about the difference between an independent contractor and an employee, visit the IRS website at www.irs.gov for more information. ---Article provided by PBA
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MEMBERSONLY - PBA WEBSITE To access the members only section of the
PBA website. First go the
the PBA main page at www.pabuilders.org.
Second, click the �member services� menu on the left. Third,
It will ask you to log on with your user ID and password.
If you have not done this before, your user ID is also your
association member ID number which is on the label of your Builder
Magazine. If you still can
not find your association member ID call us at the EO�s office and we
can lookup the number for you. The
following are items that you can find on the members only section of the
PBA website. Model Building Contract The Pennsylvania Builders Association has available for free to all members a model Building contract. This sample agreement form is provided as a reference for members as they create their own contracts with their customers. It is available in the members only section of the PBA website. Stormwater The Pennsylvania Builders Association has updated its online information about stormwater regulations to assist members in staying in compliance and avoiding the sting of fines. Visit the PBA website members only section to get this information. Realty Transfer Tax Hike Proposals to increase the realty transfer tax and begin taxing construction and real estate services are no longer looming as legislators struggle to relieve the school property tax burden. PBA members balked at these proposals and hundreds participated in two letter-writing campaigns to oppose bills that would make housing less affordable while shifting the tax burden. More details are available in the members only sections of the PBA website. Plus Much Much More - Uniform Construction Code updates move from Committee - �Requirement to repair� bill to move ahead
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