understanding worker classification
DESCRIPTION
Today's workforce offers many choices for the types of workers a company employs. From employees to independent contractors to temporary employees there are many different options for getting the help you need. However, it is important to understand the pay, benefit and tax implications surrounding each of these employee types. This webinar covers each type and when they make the most sense for your business.TRANSCRIPT
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Understanding Worker Classification
Understanding Worker Classification
Fair Labor Standards Act (FLSA)
Minimum Wage Overtime Rules Child Labor Establishes recordkeeping
rules For the FLSA to apply
there must be a employment relationship between employer and employee
Federal/State Tax Social Security Unemployment Tax Medicare
Understanding Worker Classification
Exempt vs Non-Exempt $455 per week “free and clear” Regular payments – no
fluctuating Is paid same amount in weeks
any work is performed Compensation can not be
reduced for poor quality or quantity of work
Primary duty includes managing the enterprise or recognized department (or exercises judgment in this manner)
Consistently manages two or more people
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Understanding Worker Classification
BEHAVIORAL CONTROL
FINANCIAL CONTROL
RELATIONSHIP OF THE PARTIES
INDEPENDENT CONTRACTOR
Understanding Worker Classification
Even though it includes actual operation of the facilities of the employer, it is similar to training which would be given in an educational environment.
The internship experience is for the benefit of the intern
The employer that provides the
training derives no immediate
advantage from the activities of
the intern; and on occasion
its operations may actually be
impeded. The intern is not necessarily entitled to a job at the conclusion of the internship
The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship
The intern does not displace regular employees, but works under close supervision of existing staff
Understanding Worker Classification
On Payroll Staffing Agency Employer deducts
taxes Employer workers
comp coverage covers employees
Language regarding temporary status needs to be abundantly clear
Agency deducts taxes Agency is typically
responsible for w/c* Faster turn around for
new employees
Understanding Worker Classification
Understanding Worker Classification
Understanding Worker Classification
Questions or comments? Since FLSA is so dependent upon your specific work environment email or phone may be the best way for me to answer questions.