Avoiding IRS Red Flags: Subcontractor vs. Employee Classification

that guy right and I learned a few things the very hard way and I don't want these guys to follow down the same path that I did one of the IRS red flags that I can tell you is hiring subcontractors versus hiring employees and that is one of those areas where there is actually a sheet of rules and I think they have 21 different rules that for a person that you bring into your company for them to be a legit subcontractor they have to hit every single one of these rules if they mess even one they're an employee and yeah IRS and the IRS rules on if you go through a payroll tax yes if you don't meet all the criteria as we found Alex I think they removed all of them except for maybe one from contractors if I remember and that's you know the criteria is some of the things you wanna go over some of the criteria let's go let's just touch base on this guy so let's give them a resource because at the end of this video we're gonna teach these or tell these guys how they can get a hold of you or they can at least have the basic understanding to look this up on their own pictures I mean we could spend an entire video on the difference between a contractor and the subcontractor yeah so I mean you can google it there will be a list that'll be a pretty good guideline I mean you do have to be careful about trusting your source when you google you know not everything can be trusted a hundred percent IRS gov isn't the easiest to read you can obviously trust that though if you read it there I mean when I got audited yo they went back years on me and then they actually went through every single one of my records she was very very nice very thorough gal and she would cute get on the phone with every single person that I wrote a check out you did she did she called and interviewed them set up face-to-face appointments with them they are thorough this is something you don't want to mess around with I've gotta get this thing right if you hire somebody as a subcontractor they get set their own hours they bring their own tools they set their own rates they invoice you they don't give you hours their own equipment not using your equipment right that's a subdomain if you think of it like an entity you know why do people start an LLC because you want it separate from Stan himself right reliability reasons it's it's kind of the same as a contractor an employee an employee he's gonna be tied to you you're gonna be setting all their work your equipment you know all that whereas the…