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Painting Contractors: Let’s talk about employees vs contractors

Name: Painting Contractors: Let’s talk about employees vs contractors
Uploaded: 2023-07-05T17:52:14+00:00
Duration: 39 s
Channel: Daniel Honan
Description: This content was created by balanced-griffin. This content was uploaded by balanced-griffin. This is a YouTube video titled "Painting Contractors: Let’s…

5 Jul 2023 · 1 min

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This content was created by balanced-griffin. This content was uploaded by balanced-griffin. This is a YouTube video titled "Painting Contractors: Let’s talk about employees vs contractors" (created 2023-07-05). The excerpt is a single-speaker informational segment by [SPEAKER A] aimed at painting contractors, explaining the differences between hiring employees and independent contractors — focusing on payroll treatment (W-2 vs contractor payments), employer payroll tax responsibilities (about 7.65% for Social Security and Medicare), and practical implications for business owners.

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employee versus contractor model. There's pros and cons to both sides, and it seems to be something that is on a lot of people's minds. You know, when you have somebody work for you, you want to treat them as an employee, or would it be better to have them as an independent contractor? So the biggest difference between them is usually payroll taxes, right? So an employee is paid on a regular paycheck, they're issued a W-2 at the end of the year, and you pay payroll taxes. The amount that you're responsible for as the business owner is about 7.65%, and that goes towards their Social Security and their Medicare. And they actually pay the other 7.65% as withholding on their check. An independent contractor is a different animal. An independent contractor technically doesn't work for you. They contract with you and you still pay them, but you don't do it on a paycheck. You don't do it as a W-2 employee and you don't pay taxes on their behalf.