Can I hire employees as independent contractors to save money on taxes in Nebraska? What are the requirements?

Based on the documents provided, it is important to note that hiring employees as independent contractors to save money on taxes is not advisable. In Nebraska, there are specific requirements that must be met in order to hire independent contractors.

Requirements for Hiring Independent Contractors in Nebraska

According to NEAC 227-04-02, to be eligible for a license as a farm labor contractor, an applicant must:

• Be of good character, competence, and reliability
• Not have had a Nebraska farm labor contractor’s license application denied within the preceding three years
• Not have had a farm labor contractor’s license, permit, or certificate denied, revoked, or suspended within the preceding three years in Nebraska or any other jurisdiction
• Not have persons financially interested in any capacity in the applicant’s business as a farm labor contractor who were denied a Nebraska farm labor contractor’s license, permit, or certificate within the preceding three years or who had such license denied, revoked, or suspended within the preceding three years in Nebraska or any other jurisdiction
• Not have any unsatisfied final judgments of the court or final orders issued by any government agency which require the payment of unpaid wages to employees or the payment of any advances made to the contractor by farmers or owners or lessees of land intended to be used for the production of crops
• Show proof of financial ability to promptly pay the wages of employees and advances made by farmers or owners or lessees of land intended for the production of crops in the form of a corporate surety bond or deposit with the Commissioner
• File a completed license application on a form provided by the Department
• Certify on the application that there is insurance on vehicles used to transport workers in an amount sufficient to comply with the Nebraska Financial Responsibility Law
• In the case of a corporation or cooperative association, be authorized to do business in Nebraska

It is important to note that failure to comply with these requirements can result in penalties and legal consequences.

Conclusion

Based on the requirements outlined in NEAC 227-04-02, it is not advisable to hire employees as independent contractors to save money on taxes in Nebraska. It is important to comply with the regulations and requirements set forth by the state to avoid legal consequences.

Jurisdiction

Nebraska

• Privacy