By 1970, when the Great Migration ended, its demographic impact was unmistakable: Whereas in 1900, nine out of every 10 black Americans lived in the South, and three out of every four lived on farms, by 1970 the South was home to less than half of the countryâs African-Americans, with only 25 percent living in the regionâs rural areas.
Claiming an Employee as an Independent Contractor. If you have claimed an employee as an independent contractor, the IRS may hold you responsible for employment taxes for that worker; there are steeper penalties for willful neglect as well under Internal Revenue Code Section 3509.
The distinction between employees and independent contractors is important, because an employer must withhold federal and state income taxes from employees, but not from independent contractors. Employers also must withhold Social Security/Medicare taxes from employees and must pay an equivalent amount to the Social Security Administration.