If I could teach every business owner ONE thing about payroll—it would be this:
Get your worker classifications right.
It might seem harmless to 1099 someone who should be a W-2 employee…
But that one mistake can cost you:
❌ Back payroll taxes
❌ Penalties & interest
❌ State labor violations
❌ A painful audit that no one sees coming
Here’s the rule of thumb:
📌 If you control what, how, and when they work? They’re likely an employee.
📌 If they set their own hours, bring their own tools, and serve other clients? Probably a contractor.
When in doubt—ask.
Fixing a classification mistake after an audit is far more expensive than doing it right from the start.
#PayrollTips #SmallBusinessAdvice #WorkerClassification #NoDumbQuestions #ComplianceMatters