Hollenbeck Accounting Services

Contractor vs. Employee
Many small business owners don't realize that the "contractor" they are paying should actually be on their payroll as a W2 employee. The IRS can come back and make the business owner pay back payroll taxes along with the interest and fees for not filing the payroll taxes on time. The above test is a way to help determine if your contractor should actually be categorized as a contractor.

Since, it's the Tax Year 2024 tax season, I thought I would post an example of how much taxes owed is calculated for MFJ taxpayers.