If I am paying for their actual hours worked (it could be $0 too) and if some of the employees have other full time job, (a) do I need to provide benefits to hourly paid employees/contractors?
(b) Pay federal/state taxes as employer?
(c) What are my liabilities?
(d) Will other companies where my part time employees working, have issue with my company?
2007-04-20 12:51:03 · 4 answers · asked by D Shah 1 in Business & Finance ➔ Taxes ➔ United States
Your obligation is to pay them at least the minimum wage for all hours worked, withhold taxes properly, and pay your payroll taxes.
Whether you provide benefits is up to you. However all employees of the same class must be offered the same benefits, i.e. you can't offer some full-time employees health insurance and deny it to others. You can limit it to full-time employees only if you wish, though.
You have no legal issue with any other employer, nor do they have any with you. If an employee fails to show for a scheduled shift due to another employment obligation is up to you if you keep them on the payroll or let them go.
Contractors are not employees. They do not get benefits. However, you must be sure that the services that they are providing are actually those of a contractor, not an employee. If you determine the time that they work and provide them to tools to do the job, they are employees not contractors.
2007-04-20 13:44:08 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Depends on what state you live in and you could probably find this out if you went to your states web page. I know that where I live that if you have employees that are paid hourly that yes you would need to pay the federal/state tax, work mans compensation, social security and other items. Now if they are contract employees then they really aren't employees. Then you might be able to 1099 them at the end of the year. My husband is self employed and a sub contractor so I do know that he gets a 1099 and since he has no employees he doesn't have to pay Workman's comp. Now we have a self employment tax we pay every year based on the total of his 1099's and I think that is 15%. Your best bet would be to check with your state for the rules and regulations, as to other companies having a problem with your company I have no idea what you mean by this.
2007-04-20 13:05:44 · answer #2 · answered by asilyrraj 1 · 0⤊ 0⤋
You must pay them at least the minimum wage, withhold required taxes from their paychecks and remit them to the proper government authority, and pay required employer taxes. The required taxes can vary by state, but some basic federal ones are social security, medicare and federal income tax.
You have no obligation to provide benefits, although you may if you want to.
Other companies where your employees work have nothing to do with your company.
2007-04-20 13:58:03 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
No, this is not criminal in any respect. i do no longer understand what form of job you have yet i can think of of no reason an worker could be required to artwork previous the time they are being paid for. Time to discover a clean job or a criminal expert.
2016-12-20 20:14:34 · answer #4 · answered by ? 4 · 0⤊ 0⤋