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Friday, June 18, 2010

Financial Friday: Independent Contractor Law

Independent Contractor Law
Compliments of Breedlove & Associates, written specially for Regarding Nannies

This time of year, we frequently receive questions from both families and nannies about payroll and tax reporting requirements for a summer position.  Many families assume that because the position is temporary, they can classify the nanny as an independent contractor and issue her a Form 1099.  This assumption is incorrect and can land the family in a lot of trouble.  Here’s why:

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