Question

What is used to gather information about an independent contractors

Answer 1

Answer:

AS INDEPENDENT CONTRACTOR USE grows, it is important for CPAs to help their employers manage contractor relationships properly. Failure to adopt effective preventive practices can lead to liabilities arising from unemployment, workers compensation, employee benefits, overtime and employment discrimination violations as well as unexpected costs. 

WHILE THE IRS 20-FACTOR TEST AND relief under section 530 of the Revenue Act of 1978 are important factors for companies to consider when reviewing the status of independent contractors, they are not the only ones. Companies that use independent contractors regularly must protect themselves by taking a defensive position. 

Answer 2

CPAs are used to gather information about independent contractors.

• An independent contractor is a person who is employed by a corporation or firm.
• He must complete a particular job or project rather than assigning that work to an employee or team further.
• The business firm or entity assigns the task to the independent contractor, and the business does not determine whether the project or job is to be done.
• A Certified Practicing Accountant (CPA) is a person dealing in finance, accounting, and business professional with a specific qualification.
• He decided and indicates a soundness in depth, breadth, and quality of accountancy knowledge. CPAs are highly respected by employers and members and are accountable for gathering information regarding independent contractors or freelancers.

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