Rough Waters: Navigating Labor Laws

For many small business owners, understanding labor and employment law can be seriously confusing. Paying an attorney to help explain labor law specifics can be extremely expensive, thus creating another road block. Still, for all business owners, understanding labor laws is paramount. For example, it is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. (more…)