To be an independent contractor the person must be free from your direction and control, the service performed by the person is not in the usual course of your business, and the individual is customarily engaged in their own business. If the person does not meet all three of the above, they are employees. Q. I received a penalty for filing my tax return late. The law does not grant the department discretionary power to waive penalties, so the penalty must stand. The employer is responsible for paying the employment security and job development taxes.
Temporary disability is withheld from the employee's gross earnings.
Q. My company has both a 401K and 125 program which for federal purposes reduce the amount of taxes withheld from the employees earnings. Yes, Under the law for the three taxes we administer, there are specific exemptions for those programs, so consequently the employee's net earnings are taxable.