OPENING STATEMENT

DISCOVERY 

Do you think you have independent contractors instead of employees? As a business owner, if you have independent contractors, you do not have to withhold taxes, provide benefits, or even pay minimum wage. Unfortunately, Nevada law and federal law have recently made sweeping changes in how they define an "independent contractor." If you improperly categorize the worker as an independent contractor, you may subject yourself to fines from both the State of Nevada and the Internal Revenue Service.

There are a series of factors to look at in determining whether your worker is an
independent contractor or an employee. You should look to, among other things: (1) whether the worker has control and discretion over when and how they work; (2) the worker performs services for other businesses; (3) the worker provides his/her own equipment or tools; and (4) whether the worker incurs his/her own costs in performing services such as insurance and other overhead.

I invite you to read more about this important issue in my blog: CLICK HERE

IN SUMMATION  

Margins . . . margins . . . margins. In November 2014, a question appeared on the ballot to create a Margins (or Gross Revenue) tax in Nevada. The voters defeated it overwhelmingly. Then during the 2015 Legislative Session, the Margins tax returned in the form of a newly created "Commerce Tax." Almost as soon as the Legislative Session ended, opponents to the tax prepared an effort to place a referendum of it on the 2016 ballot. Even if your business does not have to pay the tax, you must file certain disclosures about your gross revenues.

Gordon Law is closely monitoring how the Commerce Tax will affect your business' reporting requirements. For more information, please review these FAQs published by the Nevada Department of Taxation. And watch this newsletter for future developments.