![]() The answering party is only licensed to practice in the State of California. This answer is intended for California residents only. Please seek the advice of competent counsel after disclosing all facts to that attorney. You also drove 600 miles during the year for some required assignments, so you can take a deduction of 348 (using the IRS deduction of 0.58 per mile). Whether you claim the standard mileage rate or use the actual expense method, you must have written evidence of your business miles. The IRS allows you to claim your car expenses if you drive for your deliveries as an independent contractor (or for rideshare trips). All who read this answer should not rely on the answer to govern their conduct. Published: SeptemLast updated: December 7, 2022. ![]() The answer given is based on the extremely limited facts provided and the proper course of action might change significantly with the introduction of other facts. Such a relationship can be formed only through the mutual execution of an attorney-client agreement. Employers must determine whether a worker is an employee or an independent contractor, so they can correctly include all employees on their Employers Quarterly Report ( Form RT-6 ). This answer should not be construed to create any attorney-client relationship. Classification of Workers for Reemployment Tax - Employees vs. When a contractor is travelling to a project in their own vehicle, a travel and expenses policy will usually state that mileage will be reimbursed at a. If this person is deemed to be an employee you might have more to pay than mileage reimbursement. People are often mischaracterized as independent contractors when, in fact, they are employees. ![]() The contractual terms between businesses dictate what you have to pay.īe careful, however. United Auto Workers members walk in the Labor Day parade in Detroit on Sept. Essentially, you’ll know if someone is a contractor if you can only control or direct the result of the work but not how the work is done. An independent contractor is a separate business. An independent contractor is a person or entity contracted to perform work for or services to another entity. Typically, anything you pay to independent contractors is considered income, making reimbursements a confusing matter. You may also have W-2 income, interest or dividend statements and you’ll need all of that information ready for you in one place once it’s time to prepare your taxes. The law only requires reimbursement of employee expenses. As an independent contractor, you may receive a 1099-K or form 1099-MISC, you’ll want to make sure you have those on hand. If this person is truly an independent contractor, you need not reimburse that person any expenses.
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