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Chapter 36. Business Taxes > Employee or Independent Contractor?

Employee or Independent Contractor?

What about you? Are you self-employed? If you are a part-time secretary and do not have "employee" status, your employer may consider you an independent contractor. This means that the employer will not withhold taxes from your check, and like a business owner, you are then liable for paying your own taxes. Depending on how much you earn, you may be required to make estimated tax payments throughout the year.

Determining Your Status

Whether you are an employee or a contractor is a difficult question to answer. The Department of Labor and IRS usually state that if you work at the company's place of business, use its tools, and work specific hours set by the company, then you are an employee. If you work at home, use your own computer, and come and go when you please, then you might be considered a contractor.


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