I’m Gina Bongiovi. I’m a lawyer who works with startups and small businesses. Whether you’re in the startup phase or whether you just have an idea rolling around in your head you might want to turn in to a business one day, you need to know how to start a business in Las Vegas. If you’ve done any research, you have found out that the process is pretty complicated and involves a whole bunch of steps; you have to go to a bunch of different agencies, you have to figure out a name, you have to figure out what entity you want to be, you have to figure out what sort of tax permit you need from the state, how you want the IRS to
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Hiring employees costs money, not only in the amount you’re paying them but also in taxes, fees, and time spent filling out the paperwork for the relevant government agencies. Because of those headaches, it’s incredibly tempting to begin hiring workers as independent contractors. If you are misclassifying your workers, you risk an audit by the IRS and your state unemployment agencies. I’ve already discussed the factors considered by the IRS, but after helping a client through an audit by Nevada’s DETR (Department of Employment, Training and Rehabilitation), I thought I’d discuss their factors.
The employer must prove the following three conditions exist. If you fail one, you fail them all and the person in question is an employee:
1. The person has been and
Continue reading Are You Misclassifying Your Workers?
This month’s issue of the Las Vegas Chamber of Commerce‘s Business Voice features an article about Silver State Works, which provides businesses financial incentives for employing out-of-work Nevadans.
Silver State Works will provide a training allowance to a business providing 24 hours of training a week, for a total of up to six weeks.
Employer Incentive Job Program
If your new hire requires training, Silver State Works will reimburse you for a portion of the employee’s salary during the training period, up to 50% of the gross wages, up to 40 hours a week.
Silver State Works provides incentives to keep new hires employed, for up to 120 days. For each 30-day
Continue reading Financial Incentives for Hiring Unemployed Nevadans
Are you working for or with a company that has promised you ownership or profit sharing? Do you have this promise in writing?
I recently met with an intelligent go-getter who was a bit naive about business. Two years ago he began doing business development for a local company. The owners of the company had promised to reward him for his work and had endowed him with a title that made him sound like an owner, though in reality he was only an independent contractor. The owners’ promises were never reduced to writing and two years later, after having built the company’s entire client base, this client has nothing more than a fancy title, a meager salary and a pretty solid noncompete agreement that prevents him from starting his
Continue reading How to Make Sure Your Sweat Equity Pays Off
By Guest Blogger Eric Swenson, Managing Director of RSJ/Swenson, an HR and Management Consulting firm with offices in Las Vegas and Los Angeles.
When the phone rings at an HR consulting company late on a Friday afternoon, it’s usually not good news.
A former client – the principal of a professional services firm in Henderson – was clearly exasperated.
“I want to fire my assistant right now. She’s been late 11 times this month. Is it OK to fire her?”
“Let’s back up. Have you talked to her about this?”
“No. I’ve let it go, but this is getting ridiculous.”
As an at-will employer, you have the right to fire an employee at any time, for any reason – as long as it is not illegal or
Continue reading Firing At-Will Employees
By Guest Blogger Reg Baker, CPA (702) 360-2823
If you are self-employed; beware! The Internal Revenue Service plans to increase audits of the self-employed by checking for unreported or understated income during correspondence audits.
Estimates by the IRS show that at least $68 billion of the tax gap (tax gap is defined as the difference between what the IRS estimates should have been collected in taxes and what was actually received; the gap was estimated at $345 billion in 2001) was due to self-employeds not filing or not accurately reporting revenues and expenses. The IRS conducted over 5 million correspondence examinations during the past 5 years that resulted in about $35 billion in additional taxes. For
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I often speak with business owners who are ready to hire workers. While this is a big step for a small business, many owners believe they can avoid paying employment taxes simply by calling these workers independent contractors. I hate to be the bearer of bad news, but calling them independent contractors does not necessarily make them independent contractors. This issue is particularly important now, because the IRS is cracking down on companies who aren’t paying taxes on workers that are actually employees.
How do you determine whether your worker is an independent contractor or an employee? One word: control. If the employer has it, the worker is an employee. If the employer doesn’t, the worker is more likely an independent contractor. The IRS considers three aspects of the employer/worker
Continue reading Hiring: Employee or Independent Contractor?