Term
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Definition
• Complexity
• Communication
• Technology
• Accuracy |
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Term
| What classifications must employers make regarding their workers? |
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Definition
1. Employees vs. Independent Contractors
2. Exempt vs. Non-Exempt
3. Employment Eligibility
4. SSN Compliance |
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Term
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Definition
| Exception to the Common Law Test: Employers can classify certain workers as independent contractors for employment tax purposes even though the worker meets the requirement of the common law employee, if they have a reasonable basis for doing so. |
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Term
| Reasonable Basis Test Exceptions |
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Definition
Reasonable Basis Test (Exceptions)
The ER has not treated the worker or similar workers as an employee for any period and has filed tax returns (FORM 1099-MISC) consistent with that treatment, and
There is a long standing, recognized practice in a significant segment of the employer’s industry of treating similar workers as 1099s, or
There is judicial precedent for classification as 1099s
The IRS has ruled in a “published ruling” that the workers are 1099s
The company has received a specific ruling from the IRS supporting the classification
A previous IRS audit did not disallow this classification |
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Term
| Immigration Reform and Control Act (IRCA) |
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Definition
Employer Sanctions: Prohibits hiring illegal aliens
Antidiscrimination: Prohibits discrimination in hiring or recruiting workers on the basis of national origin or citizenship
Verification of eligibility: Employer is responsible to verify employee’s eligibility to work in the US
How is this done?
I-9: Must be completed on the date of hire.
Documents must be reviewed within 3 days of hire
EE Completes Section1 and ER Section 2
RETENTION??
Longer of 3 years from date of hire of 1 year from term. |
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Term
| SSNVS – Social Security Number Verification Service |
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Definition
| optional service for employers to help verify names and socials- not required. |
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Term
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Definition
| Application to request a replacement Social Security Card |
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Term
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Definition
| Verify Eligibility to work in the US |
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Term
| What is New Hire Reporting? |
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Definition
What is required with NHR?
EE Name, Address, SS, and Date of Employment
ER Name, Address, FEIN
When is it due?
Generally within 20 calendar days of hire date |
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Term
| Fair Labor and Standards Act (FLSA) |
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Definition
Passed in 1938 and administered by the Wage and Hour Division of the US Dept. of Labor
Governs the payment of wages to employees
Minimum wage
Overtime
Child labor
Equal pay protection |
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Term
| Exempt employees are not subject to? |
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Definition
Minimum wage
Overtime
Some record keeping regulations |
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Term
| Who are exempt employees? |
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Definition
WHITE COLLAR- APES
Administrative Employees*
Related to Management/ General Business Operations or Administration of a School System
Professionals*
Learned Professional and Creative Professionals
Computer professionals $27.63/hour
Executives*
Direct 2 EE’s and Hire & Fire
Salespeople
Engaged in Selling for the Company and work away from the employers’ premises
No salary requirements
*$455/week minimum |
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Term
| Exceptions to exempt employees? |
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Definition
Transportation Workers
Agricultural Workers
Hospital and Nursing Home Workers
Home Companion Care Workers
Public Sector Employees, Firefighters, Police Officers, and others |
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Term
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Definition
$7.25 per hour
Employees under 20 can be paid $4.25 per hour in first 90 calendar days on the job |
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Definition
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