Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.2 - Employee

Current through Vol. 24-12, July 15, 2024
Rule 2.
(1) The term
				"employee" is defined in section 8(2) of Act No. 281 of the Public Acts of
				1967, as amended, being S206.8(2) of the Michigan Compiled Laws.
(2) The term "employee" includes every
				individual performing services if the relationship between him and the person
				for whom he performs such services is the legal relationship of employer and
				employee. The term includes officers and employees, whether elected or
				appointed, of the United States, a state, territory, Puerto Rico, or any
				political subdivision thereof, or the District of Columbia, or any agency or
				instrumentality of any 1 or more of the foregoing.
(3) Generally, the relationship of employer
				and employee exists when the person for whom services are performed has the
				right to control and direct the individual who performs the services, not only
				as to the result to be accomplished by the work, but also as to the details and
				means by which that result is accomplished; that is, an employee is subject to
				the will and control of the employer, not only as to what shall be done, but
				also as to how it shall be done. However, it is not necessary that the employer
				actually direct or control the manner in which the services are performed; it
				is sufficient if he has the right to do so. The right to discharge is also an
				important factor indicating that the person possessing that right is an
				employer. Other factors characteristic of an employer, but not necessarily
				present in every case, are the furnishing of tools and the furnishing of a
				place to work to the individual who performs the services. In general, if an
				individual is subject to the control or direction of another merely as to the
				result to be accomplished by the work but not as to the means and methods for
				accomplishing the result, he is not an employee.
(4) Generally, physicians, lawyers, dentists,
				veterinarians, contractors, subcontractors, public stenographers, auctioneers,
				and others who follow an independent trade, business, or profession, in which
				they offer their services to the public, are not employees.
(5) Whether the relationship of employer and
				employee exists shall, in doubtful cases, be determined upon an examination of
				the particular facts of each case.
(6) If the relationship of employer and
				employee exists, the designation or description of the relationship by the
				parties as anything other than that of employer and employee in immaterial. For
				example, it is of no consequence that the employee is designated as a partner,
				coadventurer, agent, independent contractor, or the like.
(7) All classes or grades of employees are
				included within the relationship of employer and employee. Thus,
				superintendents, managers, and other supervisory personnel are employees.
				Generally, an officer of a corporation is an employee of the corporation.
				However, an officer of a corporation who as such does not perform any services,
				or performs only minor services, and who neither receives nor is entitled to
				receive, directly or indirectly, any remuneration, is not considered to be an
				employee of the corporation. A director of a corporation in his capacity as a
				director is not an employee of the corporation.
(8) The term "employee" includes every
				individual who receives a supplemental unemployment compensation benefit, which
				is treated as wages.