Classify Your Employee Status Correctly

Companies tend to have full-time staff, part-time staff, contract workers, or a combination of all three. Properly classifying employees and ensuring that they remain compliant with federal and state tax rules is crucial to avoid costly and disruptive mistakes at tax time. Also, pay attention to classifying employee’s vacation-time, sick-pay, holiday-pay and training hours, as is applicable to your business.  This will help you organize and
manage your labor budget as well as develop projections and document Federal compliance.