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

Based on the documents provided, hiring employees as independent contractors to save money on taxes in New Hampshire is subject to certain requirements.

Requirements for Hiring Independent Contractors in New Hampshire

New Hampshire follows the IRS guidelines for determining whether a worker is an employee or an independent contractor. The IRS considers three main factors when making this determination: behavioral control, financial control, and the relationship between the parties ^[1.1].

To hire independent contractors in New Hampshire, you must ensure that they meet the following requirements:

1. The worker must be free from your control and direction in performing the services, both under the contract and in fact.
2. The worker must perform work that is outside the usual course of your business.
3. The worker must be engaged in an independently established trade, occupation, profession, or business of the same nature as the work performed ^[1.1].

If you misclassify an employee as an independent contractor, you may be liable for unpaid taxes, penalties, and interest. It is important to consult with a legal or tax professional to ensure compliance with state and federal laws ^[1.1].

Conclusion

To save money on taxes by hiring independent contractors in New Hampshire, you must ensure that they meet the requirements outlined by the IRS. It is important to consult with a legal or tax professional to ensure compliance with state and federal laws.

Source(s):

• [1.1] New Hampshire Title Requirements.

Jurisdiction

New Hampshire

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