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Monday, November 29, 2010

Two Maryland Victors Avoided Taxes on Campaign Staffs

FoxNews.com: "Maryland Republican Rep.-elect Andy Harris and Democratic Rep. Donna Edwards did not provide health insurance, cover payroll taxes or pay for unemployment insurance for their campaign workers, a practice that may skirt IRS rules.

The politicians avoided these costs by paying their campaign staffs as independent contractors instead of regular employees, according to expense reports filed with the Federal Election Commission.

While employers are not legally mandated to provide health care for workers they classify as employees, they are required to pay part of the Social Security and Medicare taxes assessed of employees -- which can add up quickly, said accountant Garrett Isacco, who has worked with small businesses in the D.C. area for more than 30 years. Independent contractors pay these taxes themselves."

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