Payroll 1

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  1. six catergories of workers
    • common-law employees
    • statutory employees
    • statutory nonemployees
    • independent contractors
    • individuals referred by a temp agency
    • leased employees
  2. common law employees
    meet common law test if employer controls employees: who performs work, what will be done, how it will be done, when it will be done
  3. statutory employees
    • driver distributer or laundry; is employer's agent or paid by commission
    • full time life insurance sales agent, primarily one carrier
    • certain homeworkers supplied by employer and given specifications and return products
    • full time traveling or in-city salesperson who submits orders to employer from establishments
    • payments not subject to federl income tax witholding but are to FICA and fed unemployment
  4. statutory nonemployees
    • compensated based on sales and other achievements, not be treated as employees; direct sellers, licensed real estate agents, companion sitters
    • exempt from fed income tax, FICA, and fed unemployment tax
  5. independent contractors
    controls methods and means of the work performed, must provide taxpayer identification number
  6. individuals referred by a temp agency
    agency resposible for withholding fed, state and FICA taxes and for paying unemployment taxes
  7. leased employees
    some firms use a leasing agency or professional employer organization to reduce the costs of employee turnover and related payroll and administrative expenses.
Card Set
Payroll 1
Payroll, sections 1-4
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