📌 AFH Owners: Employee vs. Independent Contractor—Know the Difference!

If you hire caregivers or staff for your Adult Family Home (AFH), you must correctly classify them as either employees (W-2) or independent contractors (1099) to avoid IRS penalties! 🚨

Here’s the key difference:

🔹 Employees (W-2 Workers):

✔️ You control their work schedule, duties, and how tasks are performed.

✔️ You withhold taxes (Social Security, Medicare, and income taxes).

✔️ They are eligible for benefits (overtime pay, workers' comp, unemployment).

🔹 Independent Contractors (1099 Workers):

✔️ They set their own schedule and work independently.

✔️ They pay their own taxes (you don’t withhold payroll taxes).

✔️ They typically work for multiple clients and use their own tools.

⚠️ Misclassification can lead to IRS fines, back taxes, and legal penalties. Not sure if you’re classifying your workers correctly? Let’s talk before tax season! 📩

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