Who Are Ee. Flashcards
What’s statutory employees
If someone who work for you is not an ee under the common law rules, do not withhold fed income tax but they are considered ee by statute for ss+md+futa tax purposes.
- driver who delivers for someone else
- ft life insurance salesperson who sells primarily for one company
- homeworker who works by guidelines
What is employee status under common law
Workers who performs services for you is your ee if you have the right to control details of what will be done and how it will be done.
Generally, People in business for themselves are not ee.
Direct sellers, quantified real estate agents, and certain companion sitters.
What do you call them?
Statutory nonemployees
treated as self-employed for all federal tax purposes, including income and employment taxes.
What is section 3509?
When you treated an ee as a non-employee, you must still pay employment taxes.
Calculate the liability using section 3509 rates for the ee share of taxes.