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troy_y2jfan

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  1. troy_y2jfan

    Raven files a lawsuit against the WWE

    Not to bore anyone, but just to clarify. I am a CPA, and essentially, the IRS gets the same amount of tax whether they are classified as independent contractors or employees. If they are employees, the 15% is 7.65% of social security/medicare that would be withheld, plus a 7.65% match, which is company paid. If they are idependent contractors, the IRS still gets that 15%, but it is all paid by the contractors. Basically, the IRS gets their money either way. Where it would make a bigger difference (at least it would here in Ohio) is that the WWE is avoiding paying state unemployment and workers compensation (if they would be subject. I am not familiar with the laws in each state). Actually, if the workers are classified as employees, that would open a whole can of worms with the WWE having to worry about paying payroll taxes to various states. But, bottom line, the IRS is getting its money either way.
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