How to classify workers In order to comply with federal payroll tax laws, you need to properly classify you workers as either employees or independent contractors. The general steps to do this are: Assess the nature of the work being done. A worker may be an independent contractor if you ha...
With a payroll policy, employee info, and a direct deposit in place, it’s time to track hours. The FLSA requires employers to maintain accurate records of work hours for all non-exempt employees. In most cases, non-exempt (as opposed to exempt) includes hourly employees. One way to ma...
In order to do any of this, you first need to gather employee timesheets to determine how many hours each employee has worked. This is especially crucial for hourly employees, but you must also look atnon-exemptsalaried workers’ timesheet records in case they’re entitled to overtime pay. ...
These are workers who perform similar duties to full-time employees, but bill their services through a personal service company, or PSC. The use of a PSC allows workers to draw income in the form of dividends, which are exempt from National Insurance Contributions (NICs). By contrast, a ...
The IRS requires you to classify all nonprofit operating expenses correctly and to use proper forms (such as Form 990) which apply to tax-exempt organizations. At the end of the day, these tax benefits are designed to assist nonprofits, and provide financial support and relief....
How to avoid it: Misclassifying employees can end up being one of the most costly payroll mistakes a retail business can make—so it’s important to make sure you understand each classification and classify every person you hire correctly straight out of the gate. As the name suggests, indepe...
Newsflash: You don’t decide how to classify workers. The law does.Under the Fair Labor Standards Act (FLSA), workers classified as employees are entitled to benefits, like overtime and minimum wage, that independent contractors are not. Employers must also pay a portion of employees’ ...
Its main purpose was to exempt rideshare and delivery companies from a new state law that would’ve required them to classify drivers as employees rather than independent contractors. Keeping drivers classified as independen...
The most common way to categorize readers is to classify them based on their mobility. Other ways to differentiate between RFID readers include categories like connectivity, available utilities, features, processing capabilities, power options, antenna ports, etc....
While both an employee and a contractor perform work for a business, there are manydifferences between an employee and a contractor. If you’re not sure how to classify your worker, start with these questions: Who do they work for?An independent contractor enters into a contract with a compa...