What is the current state of gig workers? Are they employees or independent contractors?
Questions about Independent Contractors vs. Employees? Contact our experienced lawyers at Newburn Law today so that we can answer any questions you might have.
Tax Obligations for Incentive Stock Option Exercises
Incentive stock options (“ISO”) are corporate benefits that are part of an employee’s contractual benefits package. These benefits allow the employee to buy shares of the company's stock at a discounted price with the extra benefit of possible tax breaks on the profit earned on the stock. Generally, companies typically give ISOs to top-level management, like CEOs or CFOs, or highly valued employees as a type of passive income instead of a higher salary. They are a heavily negotiated term in the employee contracts and are used to persuade sought-after talent to join corporations due to the hefty profits they can yield. The hefty profits stem from the fact that profits made from qualified ISOs are taxed at the lower capital gains rate as opposed to the higher rate for ordinary income.
Independent Contractors vs. Traditional Employees
With the rise of the gig economy and availability of independent contractors, many companies are considering hiring independent contractors rather than employees. However, the question has to be asked – when should a company use independent contractors and when should it use employees?
The Importance of an Employee Handbook
All businesses rely on people. Human resource questions impact every business, and while your employees are your most important asset, they can also be one of your biggest risks. At Newburn Law, we understand how important your employees are to your success. We help our clients develop policies and procedures for their employees to not only keep employees happy and engaged but also to minimize the risks that human resources issues can raise. Contact us today to learn more about why you need a company employee handbook.
What Can Outside General Counsel Do for Your Business?
Businesses—small and large—all face legal, compliance, and regulatory issues. From legal entity formations to day-to-day legal matters to more-specific litigation conflicts, all businesses encounter various legal requirements that require expert guidance. Every business can benefit from having a lawyer's expertise on the team. However, not every business needs to spend the, often high, costs of hiring a full-time in-house attorney to have this guidance.