FPC Payroll Fundamentals 2024

Worker that has Fed, OASDI, Medicare, State withheld - Employee Worker that requires the employer to pay ER taxes - Employee Worker that receives W2 form - Employee Worker that does not have taxes withheld - Independent Contractor Worker that has TIN - Independent Contractor Worker that receives 1099 Form - Independent Contractor Asks how independent is the employee and how much control can be exervised over the worker. - Common Law Test A worker cannot sign a new contract stating that they will be an indepndent contractor. - Common Law Test Employer has treated similar workers as independent contractors for any period and has filed tax returns - Reasonable Basis Test Longstanding industry standard of treating similar workers as independent contractors - Reasonable Basis Test Court decisions for treating workers in similar circumstances as independent contractors - Reasonable Basis Test IRS has ruled in a "published ruling" that the workers are indpendent contractors - Reasonable Basis Test Temporary Service Provider or Leasing Company - Pays employees and taxes instead of company the employee is performing services for Immigration reform and Control Act of 1986 (IRCA) - Requires employer to verify employees' eligibility for employment in the US. Penalties for Violating IRCA - $375 for the first offence and $16,000 for the third Antidiscrimination under IRCA - The law prohibits discrimination in hiring or recruiting workers on the basis of national origin or citizenship