understanding worker classification

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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

Page 1: Understanding Worker Classification

linkedin.com/in/sabrinabaker

@sabrinalbaker

Facebook.com/acaciahrsolutions

Page 2: Understanding Worker Classification

Understanding Worker Classification

Page 3: 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

Page 4: Understanding Worker Classification

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

Page 5: Understanding Worker Classification

Photo: http://www.flickr.com/photos/

monkeyc/

Understanding Worker Classification

BEHAVIORAL CONTROL

FINANCIAL CONTROL

RELATIONSHIP OF THE PARTIES

INDEPENDENT CONTRACTOR

Page 6: Understanding Worker Classification

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

Page 7: Understanding Worker Classification

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

Page 8: Understanding Worker Classification

Understanding Worker Classification

Page 9: Understanding Worker Classification

Understanding Worker Classification

Page 10: 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.

[email protected]