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MSL SafeSource Accounting Solutions – Orlando, FL.

In today’s ever-evolving business climate, companies must be ahead of the game with research, innovation, and creativity. Outsourcing of the administrative burden allows owners and managers to focus on making more money from the core business.

As complexity increases, specialized skills are required to ensure compliance with rapidly changing regulations. It makes sense to outsource accounting and financial processes to experts in those areas.

Outsourcing professionals should have access to the most up-to-date technology and the skills to maximize the output of software solutions. It often isn’t cost-effective for small to medium-sized companies to invest in people and technology when they can access it from a reliable partner when needed.

When outsourcing is done right, it provides you timely, accurate and actionable information. You should also get objective advice for achieving success.

With accounting and financial outsourcing, companies retain control of their outcomes and have more tools for evaluating how they will face the challenges of the present, while taking advantage of the opportunities of the future.

DOWNLOAD PDF – Why Outsource Accounting and Finance?

Find out how MSL SafeSource Accounting can add value to your business. Call today to set up your free initial consultation.

MSL SafeSource Accounting Solutions – Orlando, FL

This is an important topic for business owners: How to determine if the worker is an employee or an independent contractor? The real question becomes, “How do you know?” Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment taxes on wages paid to an employee. You do not have to withhold or pay any payroll taxes on payments made to independent contractors. The Internal Revenue Service (IRS) implements the Common Law Rules to help distinguish the difference between independent contractor and employee.

Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be:

• An independent contractor,
• or An employee.

In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence that a worker has must be considered.

Common Law Rules are facts that provide evidence to what degree of control or independence the worker has. The IRS historically used a 20-factor test. Now there are only three categories to consider.

1. Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
2. Financial: Are the business aspects of the worker’s job controlled by the payer? These include things like how the worker is paid – being paid by the hour is indicative of employee status vs. a single payment to complete the job is favorable to contractor status; whether expenses are reimbursed, who provides tools, supplies, etc.
3. Type of Relationship: Are there written contracts or employee-type benefits (i.e. insurance, pension plan, and vacation pay)? Will the relationship continue, and is the work performed a key aspect of the business?

Businesses must weigh all these factors when determining whether a worker is an employee or an independent contractor. Some factors may indicate that the worker is an employee while other factors indicate that the worker is an independent contractor. There is no set number of factors that makes the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors that are relevant in one situation may not be relevant in another.

What happens if you misclassified an employee or independent contractor? If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker (relief provisions will not apply). However, the Voluntary Classification Settlement Program (VCSP) is a new optional program that provides taxpayers with an opportunity to reclassify their workers as employees for future tax periods for employment tax purposes with partial relief from federal employment taxes for eligible taxpayers that agree to prospectively treat their workers as employees. To participate in this program, the taxpayer must meet certain eligibility requirements.

DOWNLOAD PDF – Independent Contractor or Employee

If you have further questions or need additional information, please feel free to contact an MSL SafeSource Professional at 407.740.5400. We will be delighted to assist you in this matter.

MSL SafeSource Accounting Solutions – Orlando, FL

A document retention policy (DRP) is a well thought out policy outlining the review, destruction or retention of documents your business has received and generated. A DRP is prudent for many reasons including efficiency, protection in litigation and compliance with laws and regulations.

Practically speaking, a DRP decreases the amount of on site and off site storage expense. In fact, it’s safe to assume that most companies retain too much for fear that the documents destroyed will be the very ones needed at a later date.

It is also more efficient; when employees have written guidelines for how long various types of documents need to be kept it takes the guesswork out of making those decisions and helps prevent “document hoarding”.

From a legal aspect, having a written policy that is followed by all may protect your company in a variety of ways in the event of litigation.

Compliance with governing regulations specific to your industry is another area where a defined policy is necessary to ensure all supportive documents are maintained and available for audit purposes.

One area that most companies currently have a pattern if not a documented policy is the area of tax documents. Refining that policy to ensure that documents are not retained longer than necessary would be a good place to start since there are defined policies about limitations and deadlines.

Employment records is another area that most companies already have a good start toward a retention policy with practices that are currently in place due to state and federal regulations.

The first step is to determine that you need to do this as a company.   A good, second step is to outline your company’s document categories based upon your industry or profession. Following that you might begin researching the applicable regulations, policies and statutes of limitations for each category that could affect your business from a legal standpoint.

DOWNLOAD PDF – Do you need a Document Retention Policy?

If you are ready to take on this project, along with legal counsel, the MSL SafeSource team is happy to help you identify the relevant documents and schedule to develop an appropriate retention policy for your organization.