MESA, AZ, March 10, 2013 /24-7PressRelease/
-- Tax accountant Phillip Fry suggests that businesses utilize business trusts for use by their independent contractors to help exempt the contractors from the business's payment of high Obamacare taxes that begin Jan 1, 2014.
One important strategy for businesses wishing to avoid the payment of Obamacare taxes is to keep the number of their full-time employees to fewer than fifty, the minimum threshold for a business to be required to pay Obamacare taxes.
Many businesses already utilize the services of independent contractors to enable service providers not to be considered as employees under the rules and regulations of the Internal Revenue Service and of state government's tax collectors involved in the assessment and collection of state income taxes, unemployment insurance premiums, and worker's compensation insurance premiums.
The U. S. Supreme Court has established a widely-accepted five-part test, known as the "economic reality" test, that helps establish whether a person is an employee or an independent contractor.
In United States v. Silk, 331 U.S. 704 (1947), a case dealing with whether an employer owed Social Security taxes on certain workers, the Supreme Court found the following factors important:
1. the degree of control exercised by the alleged employer;
2. the extent of the relative investments of the (alleged) employee and employer;
3. the degree to which the "employee's" opportunity for profit and loss is determined by the "employer";
4. the skill and initiative required in performing the job; and
5. the permanency of the relationship.
One of the best ways for an independent contractor to satisfy the economic reality test is to create a low-cost ($99) business trust through which to provide his or her services to more than one client, and with the invoiced services being results or work product-oriented and not hours worked-oriented. Clients are invoiced for services rendered and the clients then issue vendor invoice payment checks directly to the name of the independent contractor's business trust (such as "Rockville Marketing Services").
For more information on the effective and successful use of business trusts, please visit the website http://www.businesstrustcreator.com, or email tax accountant Phillip Fry email@example.com, or phone Mr. Fry at 1-480-217-7173 or 1-480-310-7970.
Tax accountant Phillip Fry provides U.S. income tax planning and estate tax planning nationwide in the USA.---
Press release service and press release distribution provided by http://www.24-7pressrelease.com
# # #Read more Press Releases from Phillip Fry:
- Environmental Hygienists Recommend 10 Steps for Perfect Toxic Mold Removal
- Mold Experts Recommend Regular Mold Testing of Office and Workplace Air Conditioning in Arizona, California, and Nevada
- Environmental Hygienists Launch New Website for Do It Yourself Mold Inspection, Testing, and Removal
- Environmental Hygienists Introduce Ozone Gas Treatment To Kill Mold, Germs, and Odors in Los Angeles, Las Vegas, Phoenix, and Nationwide USA
- Mold Experts Recommend Frequent Cleaning Inside Air Conditioners and Ducts to Prevent Toxic Mold Infestations
- Environmental Hygienists Explain How To Clean Up Mold Without Getting Sick
- Mold Inspectors Recommend Inspection for Construction Defects and Resulting Mold Growth
- Environmental Hygienists Association Introduces Industrial and Environmental Hygienist Training Worldwide
- Mold Inspectors Launch New Website for Mold Victims in Tucson and Southern Arizona
- Mold Inspectors Introduce New Ways For Mold Testing Inside Walls, Ceilings, and Floors