Source: https://www.carnahanlaw.com/payroll-tax-and-other-issues/
Timestamp: 2019-11-13 04:37:01
Document Index: 511099879

Matched Legal Cases: ['§\u20093121', '§\u20093306', '§\u20093102', '§\u20093509', '§\u20093509', '§\u200931', '§\u20093509']

Payroll tax and other issues - carnahanlaw
The obligation to provide worker’s compensation insurance is also an issue.
COBRA (mandatory continuation of medical insurance coverage for former employees, their spouses and dependents at the employee’s election and cost)
HIPAA (which increased job mobility ensuring employee can participate in a new employer’s group health plan)
Generally, any service performed by a “common law employee“ within the United States is subject to FICA and FUTA, irrespective of the citizenship or residence of either the employee or the employer, unless exempt under some other provision of § 3121or § 3306. (includes the District of Columbia, Commonwealth of Puerto Rico and Virgin Islands (and Guam and American Samoa for purposes of FICA)).
The amount of wages and the frequency of the payments are immaterial in determining the employer’s liability to collect the tax.
The employer’s liability for the employee portion of the social security tax is generally determined under § 3102(b).
If the failure to withhold is due to treatment as an independent contractor, § 3509 limits the employer’s liability for collecting and paying the employee portion of the tax to 20% of the applicable employee tax (i.e., 1.53% of the payment), provided the employer has filed all information returns required of the employer in a consistent manner, or if the employer has not filed all required information returns, the employer is liable for 40%. § 3509 does not apply if: (1) employer intentionally disregards its obligation to pay employment taxes; (2) employer withheld but failed to pay; or (3) the individual qualifies as a statutory employee.
$100 not in the course of the employer’s trade or business;
$100 for certain nondomestic service in employee’s home;
The employee also is liable for the employee portion of the tax until it is collected from him. Regs. § 31.3102-1(c) (not affected by the employer’s liability under § 3509. Rev. Rul. 86-111, 1986-2 C.B.)