Starting a new business can be fun and exciting, but if you’re going to hire people, you need to know about employment law in Dallas, TX. There is much to learn, but the biggest thing you’ll need to understand is when you’re hiring one or many independent contractors. This guide provides you with what you need to know, so that you can move along the process with ease and no legal problems.
Contractor Chooses Hours Worked
An independent contractor works anytime they want. You can still pay them by the hour, but according to the employment law in Dallas, TX, an independent contractor doesn’t typically have to abide by hours that are set by you. Otherwise, they are considered an employee and you’ll need to withhold federal taxes and Social Security taxes from their pay, and you may be required to provide additional benefits such as medical/dental insurance, as well as paid vacations and sick leave.
An independent contractor works on his or her own time. If they don’t work, they don’t get paid, even if you are paying them by the hour. They are also responsible for their own taxes and social security.
Contractor Controls How the Work Gets Done
According to the Internal Revenue Service (IRS), your independent contractor can do whatever is necessary to achieve the work that you’re hiring them to do. As an independent contractor, they are considered to be in business for themselves. So, this means that as he or she takes on more clients, they may need to hire some help. As long as the finished product is what you expect, then refrain from telling an independent contractor that they must do the work themselves or use a certain method.
Contractors Receive a 1099
Since you do not withhold taxes or pay half of the independent contractor’s Social Security taxes or Medicare, you’re responsible for sending a 1099 to both the contractor and the IRS in January of each year. This form is sent out instead of the W-2 form, which is reserved for workers with employee status.
The 1099 contains your pertinent business information and the contractors, as well as how much you paid the contractor for his or her services. Many employers find this to be a benefit of hiring independent contractors because they don’t have to worry about complicated tax issues as they pertain to employees.
If you’re considering hiring independent contractors, call Simon | Paschal at (972) 893-9340 for more information on employment law in Dallas, TX. Don’t be left behind on what you need to know when hiring independent contractors versus employees.
EMPLOYMENT LAW DALLAS TX
Simon Paschal PLLC
13601 Preston Road Suite W870
Dallas, Texas 75204