Understanding money, one blog at a time

New and old business owners alike have met with this struggle at some point in their entrepreneurial journey. Your business is thriving and you need help! You decide to hire one person. Excited at the new relief and separation of duties, you bring the candidate of your dreams in to duplicate yourself (insert mass exaggeration).   The time has come to issue their first paycheck. After realizing that you have to pay additional taxes and worker’s compensation to employ this person, you revert to paying them as a contractor.   “Ok” you think, “this will save some money and still get the job done”. You’re living the dream for two years when suddenly, you receive a certified letter from the IRS. You are being audited! Let’s transgress into a real life story.   This happened to a previous client of mine.   In this case, they had 17 people working as contractor’s when really, they were employee’s.   After a 30 day debate, the IRS hit my client with a $45,000 bill. T...