Federal laws and regulations

Question 1

Employers subject to FUTA (Unemployment tax) rules

Answer 1

1. Have 1 or more employees for at least some part of a day in any 20 different weeks of a year
   or
2. Pays $1,500 or more in wages in any calendar quarter
3. The FUTA taxes are deductible by employer
4. They get a credit against fed taxes for state taxes paid
5. Can be subject to higher state taxes if there’s a bunch of claims

Question 2

ADEA - Age Discrimination in Employment Act of 1967

Answer 2

Protects individuals 40 or older. Employers subject to it, if they have 20 or more employees

Question 3

Title VII of the 1964 Civil Rights Act

Answer 3

Subject to if:

1. They employ at least 15 people
2. Affects interstate commerce

Then can’t discriminate against:
1. Race, sec, religion, national origin or color.

If they can show a bona fide occupational qualification then they can hire workers or a certain:
1.Sex, religion or national origin only

Can’t discriminate pay based on sex

Question 4

Which company types are subject to self-employment taxes and social security taxes?

Answer 4

C Corps:
-Subject to social security taxes on wages of employee-owners, but NOT self-employment taxes

S Corps:
-Subject to social security taxes on wages of employee-owners, but NOT self-employment taxes

Partnerships:
-Earnings are subject to self-employment taxes (except from limited interests)

LLCs:
-Earnings are subject to self-employment taxes (except from passive investment interests)