Tuesday, December 11, 2007

Not As Broke As They Thought

Well, Bergen County Republicans have something to be happy about today. The Record is reporting that they are only $38,000 in debt. This is welcome news to those of us hoping they get back on their feet in order to fight Papa Joe and the BCDO.

To avoid problems for them in the future, I picked up on something in the article Chairman Rob Ortiz said that could cause problems for them down the line:
The party failed to pay federal and state income taxes on its executive director's salary in 2003. It owes a combined $6,040 to the IRS and to the state of New Jersey. Ortiz said that the future director, a full-time position, would be paid as an independent contractor and not a salaried employee subject to the payroll tax. The post was vacant as of last week.

Here is the IRS's way of explaining the Independent Contractor vs. Employee

Who is an Independent Contractor?

A general rule is that you, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.


Who is an Employee?

A general rule is that anyone who performs services for you is your employee if you can control what will be done and how it will be done.

I'm sure with all the lawyers they've got, the BCRO can figure out a way to structure the contract for some exceptions. However, does an organization trying to come back from a near death experience, where reestablishing credibility is key, really want to also be seen trying to skirt tax laws?

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