Posted by taxguru on November 29, 2007
IRS and States Team Up on Payroll Taxes – Not really a new technique; but more of a warning that IRS and the States are desperate for those lucrative payroll taxes that are avoided when working with independent contractors instead of W-2 employees.
Another reason to check out using corporations. I have known several small businesses that refuse to hire employees and will only utilize workers who are incorporated because only humans can be employees and corporations are not human. When you hire human employees, you allow our rulers in government to dictate every aspect of that relationship. This is only going to get worse, as employers are forced to provide higher wages and more benefits and are at the same time denied the ability to fire people because of the ever increasing number of categories of discrimination criteria. Working with corporations is a much purer form of capitalism and free market economics than is ever possible with employees.
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Tax Guru - Ker$tetter Letter 