Introduction
Being as an employee in a company, there might have no differences between being an independent contractor or an employee in their points of view since they might be preforming the same job and working together at the same company. On the other hand, being as an employer, the employer must identify who and what are the differences between the employees and the independent contractors. Failure to do so might result in significant liability on the employer. The major difference between independent contractor and employee goes beyond the job, the title, and even the performance. The differences are majorly involved with legal issue such as determining one’s liability to pay and withhold Federal income tax, social security tax and
…show more content…
Sometimes independent contractor is defined as consultant, freelancer, the self-employed, and business owner. Example for hiring an independent contractor is that sometimes businesses hire outside accountants to do their financial reports to submit to the IRS.
The independent contractor does not receive employment benefits from the employer such as insurance, paid time off, and unemployment compensation. The company that hires them is not required to provide an office for them. According to FindLaw, “Independent contractor is not subject to tax or FICA withholding, but pays his or her own self-employment tax.” They are required to submit their own income taxes to the IRS.
Employee
Employee is someone that provide the service for an employer under a job title and a job description that is formed by the employer to what the job will be like and how it should be performed. Employee would receive training for how the work should be done. The employer often has the legal rights to terminate an employee and the employer must provide a safe and healthy environment and equipment for the employee to work with. Employee are almost likely covered by federal laws such as ADA, FLMA, OSHA, and anti-discrimination
With the economy beginning to rebound, many companies are looking for every way possible to save money and/or maximize profits. One of the biggest costs incurred by any business is labor. Consequently, employers sometimes attempt to minimize this expense by utilizing independent contractors instead of employees. There are potential risks for employers who mischaracterize an employee as an independent contractor, because, while it may save payroll taxes and other benefit costs in the short term, it may lead to penalties on such taxes as well as other inadvertent violations of worker’s compensation laws, FMLA, etc, which each hold separate penalties for violation.
...iscrimination will not occur. It is also important to post some of the Title VII laws, so that employees will understand what to do in case they feel they have been discriminated against.
Employees work for employers in order to gain money and afford their minimal living expenses, whereas employers give up on their money and pay for employees because employers take care of their need for labor. Employers pay for their workers who we call employees and employees earn hourly wages. The calculated minimum wage that they earn on an hourly basis is called minimum wages. Besides, there is this cycle where everyone actually works for each other and pays each other to supply different types of goods and services.
...d other employees would benefit by becoming knowledgeable of their rights under the laws of EEOC and corrective or preventive actions would be taken to discourage discrimination. This is why it is so important that an employer must educate management, as well as, employees so that problems, such as, John’s won’t escalade to the point of a complaint being filed within the EEOC administration. Employer’s may lose, as well as, employees and may become devastating where as both parties are negatively affected.
Using examples involving human service workers, discuss how interprofessional practice is defined. Discuss the barriers to interprofessional practice and how these might be addressed.
...ployee you hire after November 6, 1986.” (US Citizens and Immigration Services 2010) 2. An audit trail, consisting of a file of all employees names, social security numbers and I-9 verification forms will be the one tool needed to ensure that all employees are legal citizens. 3. In the case of hiring outside contractors to perform some of the transportation, cargo and handling duties IRS ID numbers will be sufficient proof that the company has followed all USCIS laws and hires only document workers and contractors. All companies nationwide are required by law to follow the I-9 Law of 1986. To ensure success, the audit trail must end where it starts; meaning when an employee or contractor is hired to perform the duties at hand, once the I-9 or IRS Tax ID number is secured and the form is complete, the company is free and clear from any audit non-compliance.
In fact, the majority of employees within the United States are covered by the FLSA. However, there are employees who are exempt from the FLSA minimum wage and overtime regulations.
Many employers have been baffled as they attempt to sort through the overlapping obligations created when a sick or injured worker's medical condition triggers the different rights and responsibilities under new federal laws. If businesses want to avoid costly lawsuits from disgruntled employees it is essential to understand their responsibilities under the laws. Employers must make a tw...
The Equal Employment Opportunity Commission (EEOC) is the federal agency that enforces the federal laws, policies and regulations as it relates to employment discrimination. Over the course of years, Title VII has been amended to reinforce its prohibitions to include pregnancy as a type of gender discrimination, jury trials, compensatory damage and punitive damages. Its amendments have also strengthened the enforcement policy of the EEOC. An employer and employee need to be aware of those areas that are and are not covered by Title VII. It applies to employers, unions, joint labor and management committees as well as employment agencies whose functions include referral and training decisions among others. It applies to all private, federal, state and local governments who employ 15 employees or more. An employer with less than 15 employees is not required to comply with the guidelines set by Title VII. Title VII covers all levels and types of employees. In 1991, the act was further extended to include United States (U.S.) citizens who are employed outside of the U.S. for American employers. Non U.S. citizens are also protected as long as they are employed in the U.S. Title VII however, does not a...
The FLSA is managed and implemented by the Wage and Hour division of the United States Department of Labor. “The Wage and Hour Division (Wage-Hour) administers and enforces FLSA with respect to private employment, State and local government employment, and Federal employees of the Library of Congress, U.S. Postal Service, and Postal Rate Commission. The FLSA is enforced by the U.S. Office of Personnel Management for employees of other Executive Branch agencies, and by the U.S. Congress for covered employees of the Legislative Branch.” “The law generally applies to all employees of specific enterprises having workers engaged in interstate commerce, producing goods for interstate commerce, or handling, selling, or otherwise working on goods or materials that have been moved in or produced for interstate commerce.” However, workers that are not covered by the FLSA may still be subject to its minimum wage, overtime pay, recording, and child labor provisions if they are individually engaged in interstate commerce or in the production of goods for interstate commerce, or in any closely-related process or occupation directly essential to such production.
The use of contingent workers is on the rise. The U.S. Bureau of Labor Statistics defines contingent workers as anyone who "does not have an explicit or implicit contract for long-term employment" (Phillips & Gully, 2011 pg 51). This definition includes independent contractors, freelancers, consultants, and temporary workers who may or not work for an agency. In the past 50 years, temporary workers have been crucial to many businesses, and their role in business is growing. Companies must recognize potential problems and concerns brought about by employing temporary workers, and adjust their approach to staffing.
Throughout the years the United States has faced many challenges with equal employment opportunities for everyone. The United States has developed The Equal Employment Opportunity Commission, also known as the EEOC, to enforce laws that help prevent everyone from being treated unfairly when it comes to employment options. The EEOC has established stipulations and overlooks all of the federal equal employment opportunity regulations, practices and policies (“Federal Laws Prohibiting Job Discrimination Questions and Answers”). Some laws that have been passed are the Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964 and Age Discrimination in Employment Act of 1967. Although some discrimination is still a problem, all of these laws have helped the United States citizens become treated more equally in the work force.
John W. Budd & Devasheesh Bhave (2006). Sage Handbook of Industrial and Employment Relations. Industrial Relations Center, University of Minnesota. Chapter 5.
If you work from home as a contractor there are some important financial issues that you should look into and will face. Health Insurance is very important and have good health insurance is every of greater importance. If the company doesn’t offer health insurance purchase your own to cover you and/or family. Retirement is very important when you stop working in this society. You have to have money to live off of so save up and take maximum advantage of tax deductible IRA contributions that you make every year and set up a retirement program. There is many other financial road blocks that may occur that remote employees may not be aware and need to know all there is to know. A financial planner, tax and/or accounting professional can advise and guide you on the financial impact of your future and work at home environment. These trained professionals can help to set up a program to help keep track of expenses and structuring your life and business in such a way that you pay as little tax as legally possible, while keeping an eye our for your future (Work-at-home-contract-jobs, 2004). Tax, financial and retirement can go a long way toward a secure future with your work at home schedule. We should always educate ourselves and structure our lives for the best.
A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks. 2.3. 1.Know the