Tax season is upon us. This year, rumor has it, small businesses are in for a wake-up call. The IRS is cracking down on improper employee classifications. What most of us would attribute to a simple misunderstanding or clerical error, actually goes a lot deeper than that.
Absent Mindedness Accounted For
The IRS estimates that 30% of workers are misclassified. That percentage amounts to $7 billion in missing government revenue. Their mission: get that revenue back, even if it means a 100% penalty on the payroll taxes owed. Nearly 6,000 businesses across 14 states have been audited already. The IRS doesn’t show any signs of slowing down.
How did this become such a large-scale problem to begin with? What does it have to do with a business line of credit? Thankfully, the Advance Funds Network (AFN) can fill in some of the blanks for us.
It turns out you can’t sweep the misclassification of employees under the rug of naivety that easily. Small business owners have been using this strategy to avoid their fiscal responsibilities.
These include:
- Adhering to minimum wage laws
- Payroll taxes
- Social Security
- Medicare
- Unemployment Insurance
By classifying workers as independent contractors rather than company employees, business owners can skirt the cost of hiring support staff and leave their new hires without benefits packages. Many businesses believed this strategy to be a “harmless” way to reduce their overhead. That grievous misapprehension spells not only financial penalties, but legal trouble as well.
Luckily, AFN has an upstanding legal counter strategy that will help you avoid this mistake.
Putting Status under the Magnifying Glass
Hold onto your tax return as well as your hat; this is where a business line of credit comes into play.
Everyone understands the financial hardships that small business ownership can bring, but defrauding the government and short-changing your employees isn’t the answer. Why not apply for a business line of credit? The funds are easy to apply for and quickly accessible (available within 48 hours).
There’s no need to bend or break the law. This option gives you the resources to cover fluctuations in your overhead expenses. In fact, its uses go far beyond just employee taxes and benefits. You can use these funds to cover anything your business needs from remodeling and leasing costs to billing and payroll.
Unlike other sources of unsecured funding, a business line of credit is reusable. Simply pay off the outstanding balance and have the money there as a back-up when you need it. Already owe the IRS money? Use a portion of credit line funds to pay down your debt. How you use the money is your business. The important thing is to meet your responsibilities of business ownership, and to do so legally.
Why take a gamble that’s bound to catch up with you? Visit: www.advancefundsnetwork.com and find out more about a business line of credit. Find the unsecured solution that’s right for you and apply for a sure thing today.
