Posts

Employee or independent contractor: What’s the difference?

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When I speak with location independent entrepreneurs and expats, the issue of employee vs contractor frequently comes up.

There is no uniform test to distinguish employees from independent contractors. Government agencies such as the IRS, the U.S. Department of Labor (DOL), and the National Labor Relations Board (NLRB) each look at their own set of factors. The same is often true of the state where the business is located.

While the tests for determining a worker's classification differ, there is a common thread: Definitive answers can be difficult to find.








What’s the difference between the classifications? Why does it matter?

The IRS has long had a voice in the categorization discussion.  In 1987, based on an examination of cases and rulings, the IRS developed a list of 20 factors to consider when determining whether a worker should be classified as an employee or independent contractor. The IRS’ next steps included the identification of three categories of evidence that may be rel…

Being Location Independent within the EU

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I previously wrote on the trend towards the EU taxing its non resident citizens -
http://www.mooresrowland.tax/2020/01/the-eu-taxing-non-resident-citizens.html
Similarly, we are frequently approached by location independent international entrepreneurs in the EU who would like to remain in the EU.





To understand the freedom of establishment, we refer to Articles 26 (internal market), 49 to 55 (establishment) and 56 to 62 (services) of the Treaty on the Functioning of the European Union (TFEU) https://www.europarl.europa.eu/factsheets/en/sheet/40/freedom-of-establishment-and-freedom-to-provide-services

Thanks to freedom of establishment, any European citizen can come and go from the country they are in, whenever they choose.  Within the Schengen Zone, there are practically no requirements to becoming a resident within another EU State besides having valid health insurance, a residence and a minimum income of about €80 a week.
Thanks to EU protection of rights, when it comes to the tax on …

The Tax Cuts and Jobs Act’s Impact on Cross-Border Transactions

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We've wrote alot about TCJA in general and GILTI in particular -
http://www.mooresrowland.tax/2019/02/gilti-rules-particularly-onerous-for.html
http://www.mooresrowland.tax/2018/02/us-exposed-owner-of-international.html
http://www.mooresrowland.tax/2018/12/the-2017-tax-cut-and-jobs-act-and.html
http://www.mooresrowland.tax/2019/11/switching-from-s-to-c-corporation.html
http://www.mooresrowland.tax/2020/01/foreign-companies-unintentionally.html
http://www.mooresrowland.tax/2019/01/gilti-regime-guidance-answers-many.html



Two years after the enactment of the Tax Cuts and Jobs Act (TCJA), the most significant tax reform enacted in a generation, taxpayers continue to encounter substantial uncertainty arising from interpretations of new statutory provisions, reinforcing calls for administrative guidance to provide more clarity.

The TCJA introduced comprehensive international tax reforms that have profoundly impacted multinational companies and cross-border transactions. The sweeping reform was…