Progress on employee classification issues
Article Abstract:
The Small Business Job Protection Act of 1996 contains provisions that may offer businesses greater certainty in worker classification, but fundamental reform of the 20-factor test may still be needed. The IRS is implementing programs that will assist agents and businesses in resolving disputes as to whether workers should be classified as independent contractors or employees. The Act expands the industry practice safe harbor, heightens IRS notice requirements, allows employers to make prospective classification changes without jeopardizing consistency and eases the burden of proof imposed on employers.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1996
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"Nanny tax" rules simplify reporting
Article Abstract:
The Social Security Domestic Employment Reform Act of 1994 established revised reporting and withholding requirements for taxpayers employing domestic workers in their homes. FICA withholding is required for all domestics over 18 earning $1,000 or more per calendar year, and unemployment taxes are required for the tax year if wages exceed $1,000 for any calendar quarter. Reporting of these wages and withholdings has been simplified with introduction of Schedule H, which is filed with the individual's tax return.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1996
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The nanny tax: lessons unlearned
Article Abstract:
Tax preparers can protect themselves from preparer liability and their clients from future tax penalities by stressing the importance of paying any nanny taxes that are due. Despite simplifications in filing for domestics that were passed in 1994, there has been little if any increase in filings that reflect employment of domestic services. Despite the many reasons why people to not comply with the law when it comes to paying taxes on domestics, such actions still constitute tax fraud.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1996
User Contributions:
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- Abstracts: Pension compensation fiasco. Large lets multi-tied genie loose. Putting the trust back in life
- Abstracts: New values catch on slowly in Europe. Germany: restructuring. A borse of a different colour
- Abstracts: Classification of expenditures: IRS seeks to clarify INDOPCO. Employer educational assistance programs: can the frustration of lapses in statutory authority be avoided?