A new business owner is setting up a business and will be opening in 3 months. While she is recruiting for full-time employees, she hires a temporary worker. The worker is only helping out a few days a week and doing odd jobs such as being on the premises when the owner is away, stocking office supplies, and helping arrange office furniture. At the end of the week, the business owner pays the worker the agreed-upon fee of $200. What issues might affect the business?
What will be an ideal response?
The answer should indicate that the business owner needs to have an EIN. The worker should have the protections of an employee. Other considerations might include workers’ compensation, and to comply with IRS regulations, the employer should withhold part of the employee’s income for employment taxes. Other withholdings may include state taxes, depending on the state. The employee should complete a W-4 form and an I-9 form, verifying the employee’s eligibility to work in the United States.
You might also like to view...
Which of the following is part of Deming's PDCA cycle?
A. check B. direct C. apply D. process E. decide
A market is the set of actual and potential buyers of a product or service
Indicate whether the statement is true or false
_____ involves sending a message that the receivers retrieve or access at their convenience
Fill in the blank(s) with correct word
Job analysis provides the underlying information for preparing job descriptions and evaluating jobs.
Answer the following statement true (T) or false (F)