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Main Street Business

304: Employees vs Subcontractors - What to Know

Main Street Business

Mark J Kohler and Mat Sorensen

Tax Reform, Entrepreneurship, Business, Irs Updates, Tax Tips, Legal Compliance, Business Structure, Tax Prep, Accounting, Tax Strategies, Management, Financial Reporting, Estate Planning

2.4584 Ratings

🗓️ 27 August 2020

⏱️ 53 minutes

🧾️ Download transcript

Summary

Join Mark and Mat as they break down the difference between an employee and a subcontractor and everything you will need to know when looking to employ someone in your business. This is very important information to understand, especially if you own a business in California! This is an extremely informative discussion with straight forward answers and some fun dialogue. To Search prior episodes, or sign up for their Weekly Free Newsletter, visit www.mainstreetbusiness.com. Grab my eBook...

Transcript

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0:00.0

Welcome, everyone to the Main Street Business Podcast. This is Matt Sorensen. So excited to be with you today. I got Mark Kohler here, Drock and his drinking. His rock star recovery. Is that what you drink after you perform on stage? A rock star recovery drink? Yeah, I'm trying to get a sponsorship because I'm trying to be the only rock star accountant in the country. And not that I'm any more important or smarter than anyone else. But there's actually three of them. There's actually three of them. I don't know if you knew that. There's three of them. Yeah. Yeah. Who are they?

0:57.1

Yeah. I don't know, but there's got to be at least, there's got to be at least three. It's like, there's three. Who are? Tom Hughes, the keyboard player in my old band. That's true. He was an accountant. Yeah. Yeah. There's some cool accountants out there. Yeah. he was sponsored by Monster, though. So he didn't get rock stars.

1:07.5

Yeah. So if you're watching the video portion of this on YouTube, I'm trying to turn my face and drink my rock star to get any sort of points with the rockstore corporation.

1:12.0

But anyway, welcome everybody. We try to keep this light. We try to have fun. I myself fun I myself from the CPA and attorney I've got the amazing Matt sorenson with me tax attorney

1:16.7

author of the self-directed IRA handbook and CEO of directed IRA he's been a tax attorney for 20 years

1:23.6

as myself and we got a little law firm we got an accounting firm a trust company and we

1:29.0

just love Main Street business hence the Main Street Business podcast glad you're with us

1:34.2

and this is a this is a really contentious topic yeah yeah contentious I think yeah contentious I think

1:40.8

is a is a good word volatile uh but I I think there's a lot of people in denial on this topic.

1:49.2

A lot of business owners who don't want to hear this because they don't want us to tell them.

1:53.3

They don't want your lawyer to tell them you need to classify some of these people doing work

1:58.2

for you as employees.

2:00.0

And so we're going to break down.

2:02.0

What's an employee?

2:02.8

What's an independent contractor?

2:05.2

Much like the state of California is trying to do to Uber and Lyft right now, right?

2:09.6

The Attorney General sued Uber and Lyft, one so far in court.

2:14.6

And Uber and Lyft almost shut down in California entirely. They filed an appeal

2:19.0

and they're up for, you know, their life's on the line right now. But there's a lot of litigation

2:23.7

on this. The government is trying to get, in most states, people classified as employees as much

2:29.8

as they can. So you've got to be careful to make sure you're walking the line properly in this,

2:35.1

in this area. And you know, I have to, on the face of it, I get mad about it. I do because I,

...

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