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The alternative minimum tax or AMT is more than a mere tax: It disallows or reduces exemptions and deductions that would otherwise work to your benefit. Forbes calls it the normal tax system's evil twin. You may think your children entitle you to exemptions or that your property taxes will earn you a deduction; however, AMT could have a whopping tax bill knocking at your door.

One of the most important tax and payroll issues a company has to address is who is an actual employee and who is an independent contractor. But once you have that worked out, your next step is making sure each category of workers gets the right forms. True employees get Form W-2 each year, and freelancers — independent contractors — get Form 1099-MISC. This form can be used for a variety of payments, and one of the most common and significant uses is for independent contractors.