...independent contractor; an analysis should be made of the individual's employment activity. Factors such as the following should be considered in the evaluation of the individual’s employment activity. For example we may look to see, if the individual works for many firms or clients or just work for one firm or client, if the individual's services are readily available to the public, if they determine their own work hours and schedules, or does the individual receive regular payments from one firm or from a variety of firms. All of these factors play an important role in determining who is an employee and who is an independent contractor. After reviewing Revenue Ruling 87-41 it is a little easier to determine who is an employee under the common law rules. Under these rules twenty factors have been identified in aiding the determination of an individual as an employee. Some of those factors include Instructions where the person for whom the services are performed have the right to require compliance with instructions to determine whether an individual is an employee or is self-employed no one factor should be considered as controlling, but rather all these factors should be reviewed. From a taxable income perspective, I believe it is better to be an independent contractor because all trade or business expenses are deductible for AGI, whereas, if the individual is an employee, any unreimbursed employment-related trade or business expenses are deductible as miscellaneous itemized...
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...Homework 2 1. Rachel is a limited partner in Starship Partners. This year Starship reported that Rachel's share of dividend income was $3,700 and his share of municipal interest was $2,750. Early this year Rachel found a bundle of $100 bills in the alley outside his apartment. When no one claimed the money, the cash (a total of $2,400) was returned to Rachel. Finally, Rachel earned salary of $42,000 but almost $6,500 was withheld for income taxes and FICA tax. Compute Rachel's (a) realized income and (b) gross income. BE SURE TO CALCULATE BOTH AMOUNTS. a) 3,700 + 2,750 + 2,400 + 42,000 = $50,850 b) 3,700 + 2,400 + 42,000 = $48,100 2. Ted works as a painter for local businesses on weekends, and he often provides services in exchange for property. This year Ted provided painting services in exchange for $1,275 of car repair services, $3,570 of groceries, and a certificate of deposit (CD) for $4,050. The (CD) matures next year with interest. Finally, Ted received a gift card that can only be applied for $850 of clothing at a local mall. Ted has only applied the gift card to purchase $100 of clothing. Compute Ted's gross income assuming that he uses the cash basis of accounting. 1,275 + 3,570 + 4,050 + 850 = $9,745 3. Jennifer was married on November 1 of this year and on that day received numerous gifts from her extended family. Her grandfather presented Jennifer with a check for $15,000; her uncle gave Jennifer 1,000 shares of Ford stock worth $10 per share (the uncle purchased...
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...City, the City of Kyle also operates with a City Manager form of Government. The City Council is comprised of a Mayor and six Council Members. The resident voters choose the Mayor and three Council Members at large and the other three Council Members are elected from their prospective districts. The goal of the proposed budget for the City of Kyle is to maintain the current service levels for all necessary city services. The goals and objectives of the City is the guideline for forming the City’s yearly budget. The budget projection is slated to significantly improve the city’s local business climate over the next few years. Most of the city’s growth stems from workers in the nearby city of Austin, TX, where real estate and property taxes are slightly higher. It is best for the city and it’s implementation partners to be flexible given the needs and demand of the economy and market. Kyle’s adopted annual budget will require...
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...stimulating it. If there is no innovation, there is no advancement as a society. He goes on to explain that antitrust law prosecutes on a case by case basis while new regulations do not, which can ultimately affect consumers (Goodlatte, 2014). Another issue that governments have dealt with since the Internet emerged is Internet taxation. Around 1996, several U.S. states saw potential for the Internet to become a great source of tax revenue. These thoughts were pretty quickly put down when the U.S. government introduced the Internet Tax Freedom Act (1998). The law barred all levels of government from imposing an Internet access tax (Stupak, 2016). In 2016, the U.S. government made the act permanent, so U.S. citizens do not have to worry about taxes on Internet access anytime soon. However, there are several governments around the world that do have an Internet access tax put into place or have attempted to put one into place. For example, in 2015, Pakistan government imposed a 19.5% broadband usage tax but faced a lot of opposition. The tax has since been decreased based on customer usage rates (“Sindh”, 2016). User-generated content is probably the most well-known issue that governments face when dealing with the Internet. There is so much content out there that it is almost impossible to regulate. For example, social media companies in the U.S. are not held liable for the content that users of the social media service post. However, the Chinese Supreme Court issued new regulations...
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...Rule City, the City of Kyle also operates with a City Manager form of Government. The City Council is comprised of a Mayor and six Council Members. The resident voters choose the Mayor and three Council Members at large and the other three Council Members are elected from their prospective districts. The goal of the proposed budget for the City of Kyle is to maintain the current service levels for all necessary city services. The goals and objectives of the City is the guideline for forming the City’s yearly budget. The budget projection is slated to significantly improve the city’s local business climate over the next few years. Most of the city’s growth stems from workers in the nearby city of Austin, TX, where real estate and property taxes are slightly higher. It is best...
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...04 1st Semester Final Exam Review Name: Michael Piper Company Information – Provide the following information: Company website: http://geneva304.wix.com/area-304 Company E-mail address: area304.il@veinternational.org Area 304 Slogan: Dream Big. Dream Worldwide. Organizational Chart – How are we structured? We use a hierarchical organizational chart, which means that every employee is grouped by department, and each employee has a supervisor. Form of business organization: We are a C-Corporation. Purpose of employee orientation: It provides employees the opportunity to get acclimated to their positions and their role in the firm. What is included in employee personnel files: Evaluations, raises, disciplinary actions and commendations. Business Knowledge How does the US Wholesale Marketplace work? Distributors buy products from a manufacturer, then they sell the product to retailers. How do US savings accounts work? Interest can be earned on any money that is stored. Different banks pay different rates, and interest is also compounded differently from bank to bank. What is FDIC insurance and how does it work? The FDIC is a United States government agency that preserves confidence in banks by insuring money deposited into those banks (up to a certain point). What are CD’s (Certificates of Deposit)? These are certificates issued by banks to people who deposit money. What are IRA’s? This stands for Individual Retirement Account. It is a good way to save...
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...“employees in the private sector and in federal, state, and local governments. Covered nonexempt workers are entitled to a minimum wage.” (www.dol.gov/whd/flsa) It also started “the forty-hour work week, established a national minimum wage, guaranteed ‘time-and-a-half’ for overtime in certain jobs, and prohibited most employment of minors in ‘oppressive child labor.’” (Wikipedia) Provides enterprise and individual employee coverage. Federal Insurance Contributions Act (FICA) – an employment tax that “imposes two taxes on employees and two taxes on employers.” These taxes fund old-age, survivors, and disability insurance program (OASDI) and hospital insurance (HI). (Textbook) The FICA “tax is a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare —federal programs that provide benefits for retirees, the disabled, and children of deceased workers.” (Wikipedia) This act requires “12.4% of earned income up to an annual limit must be paid into Social Security, and an additional 2.9% must be paid into Medicare. That limit is $113,700 for 2013.” There is a cap for Social Security tax, but for Medicare taxes there is not an earned income limit. Therefore, if you do not have to pay the social security tax, you are still responsible for the Medicare tax. “If you're...
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...system and judges are not backing the drug testing idea because of the fourth amendment. In my personal opinion I am for people being drug tested who receive benefits or any assistance from government funded programs. The middle class worker has to be drug tested to work, earn money and pay taxes. People who receive assistance should not be exempt from this type of requirement. What is Welfare? Welfare is a public assistance program designed to help people who are not able to support themselves fully. Welfare encompasses those government programs that provide benefits and economic assistance to no or low income individuals. It can also be defined as financial assistance to impoverished individuals which is supplied through the taxes paid by the working class. Improving the quality of life and living standards for the poor and underprivileged is one of the main goals of welfare. When a person is not receiving an income, or only has low earnings, they may be eligible for welfare benefits that will help meet a satisfactory standard of living by providing a minimum amount of financial assistance. These benefits are provided from the income of the working class people through the social security taxes that are deducted from their paychecks. The state of Michigan...
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...------------------------------------------------- By: Freda Manning January 31, 2016 MBA 605 Business, Government, and Society Mercy College January 31, 2016 MBA 605 Business, Government, and Society Mercy College Abstract In this paper, I will examine and compare the impact of American, Japanese and European Labor laws and how it's managed throughout the society. I will begin by providing facts on employment protection throughout history for each country and identify their weakness. Next, I will discuss the impact of each country economic structure and how it influences the market and employee regulations. Finally, I will compare various facts of Japanese, American and European labor laws that have a significant impact on the new economic environment. Background In the 1980's employee protection was not a high priority for businesses. Many restraints put on small businesses prevented the growth of private sector corporations (Steiner & Steiner, 2012). Resulting in high unemployment rates and slow economic growth (Steiner & Steiner, 2012). There has been strains placed on the permanent employment system in Japan, because of the larger number of older workers and the increase in the retirement age (Gould, 1984). Historically the U.S government did not interfere in employee relations; employees at times were treated like property, or as a means for production cost. There was decreases in wages and no incentive to improve working conditions. In the 1930s is when the U.S government...
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...workers are covered by collective bargaining agreements which tie wages to the CPI. The index affects the income of almost 80 million people as a result of statutory action: 47.8 million Social Security beneficiaries, about 4.1 million military and Federal Civil Service retirees and survivors, and about 22.4 million food stamp recipients. Changes in the CPI also affect the cost of lunches for the 26.7 million children who eat lunch at school (U.S. Bureau of Labor Statistics, 2001) . Some private firms and individuals use the CPI to keep rents, royalties, alimony payments and child support payments in line with changing prices. Since 1985, the CPI has been used to adjust the Federal income tax structure to prevent inflation-induced increases in taxes (U.S. Bureau of Labor Statistics, 2001) . 2. How is the CPI market basket determined. The CPI market basket is developed from detailed expenditure information provided by families and individuals on what they actually bought. For the current CPI, this information was collected from the Consumer Expenditure Surveys for 2007 and 2008. In each of those years, about 7,000 families from around the country provided...
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... RE: In order to fulfill your request, I explain the types of taxes involved in determining the payroll and paying employer payroll taxes. The taxes involved in determining the payroll are: • FICA taxes. Congress, intended to provide workers with supplemental retirement, employment disability, and medical benefits, passed FICA. These benefits are financed by a tax levied on employees’ earnings. Congress sets the tax rate and tax base and both change intermittently. FICA tax rate is 7.65% on the first $110,100 of gross earnings. FICA taxes are withheld by the employer and then remitted to the government. These taxes are not an expense to the employer. FICA consists of Medicare and Social Security tax. • Federal income taxes. Employers are required to withhold federal income taxes from employees each pay period. The amount depends on the employee’s gross ...
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...Employment-at-Will Exceptions Gracie Harris HRM 546 April 30, 2012 Professor Anthony Ellis Employment-at-Will Exceptions When operating a company, one must make sure that the hiring process lines up with the employment laws. One main concern to consider is whether the person hired is an employee or an independent contractor. A major topic that reflects employee and independent contractor is employment-at-will. Independent contractors and employees are not the same. The characteristics of each affect the manner in which a variety of taxes are withheld and the legal consequences that may arise. Each employee will have a set amount of social security, medicare, federal, and states taxes withheld from his or her pay. This paper will distinctively explain the difference between employees and independent contractors and how employment-at-will exceptions can protect organizations. Employee and Independent Contractor The employees of Fast Tax Service, Incorporation are considered as employees. A common rule of an employee is anyone who performs services for a business and the employer has control what will be done and how it will be done (Kerch, 2012). Therefore, anyone who works for company and has to abide by final decisions made by the supervisor or employer is considered an employee. The following are requirements of an employee: o performs duties dictated or controlled by others o receives training for work to be done o works for...
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...socio-economic aspect particularly on the communities nearby. The project will provide more work and profit for the people of the community that can support them to have a standard living and improve their socio-economic statuses. It can also help the government to support its programs by generating profits through the taxes therefore the project can contribute to the economic growth of the country. The government, the people, the consumers, the related industries, and the workers employed will be the beneficiaries of this project. The evaluation of the study draws the attention of the following: Employment This project will provide opportunities to the people who are unemployed. The company will employ four (4) contract workers. This employment opportunity will affect their income level that will eventually improve their standards of living. Approximately Php 300,000 total worth of salary for the company’s employees will be given in a year, net of contributions. Benefits to the Government The government will benefit in the form of generated incomes of the company and can help generate income for the government to support its programs through the taxes paid by the company. People in the Community The people in the community where the project will be established will gain from the project. The workers will be hired from the project site, thus, contributing to the generation of labor in the area. In addition to creating labor, the project will also open ideas and opportunities...
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... Selecting of a good location for the factory enables employers to spend less money but still increase profitability for the company. The cost of manufacturing a product can be reduced through a proper factory location selection by considering such factors as minimum wage, employment insurance, government pension plan and other taxes which will be discussed later in this report. Location that offers lower cost always attracts more companies and investors. And in this report, Bloomington will be more attractive to company since it offers lower minimum wage and employment insurance, pension contribution and other taxes. After calculating the total cost to open new plant in Bloomington and Toronto, the supply chain analyst’s final decision will be made based on those costs. TABLE OF CONTENTS INTRODUCTION 2 BACKGROUND 2 DISCUSSION 2 Minimum Wage 2 Government Pension Plan 3 Other factors 3 CONCLUSION 4 Works Cited 5 INTRODUCTION As a supply chain analyst, it is very important to consider some factors which might impact positively or negatively in location of a new factory. By analyzing such factors as minimum wage paid, employment insurance, government pension plan and other taxes, the report will be helpful for the employer during the decision making process. In this report, Bloomington, Indiana, USA and Toronto, Ontario, Canada will be selected as proposed location for consideration. Which location that gives the less cost in term of operational and...
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...Christ the King Sixth Form College BTEC 90 CREDIT DIPLOMA IN BUSINESS UNIT 1: THE BUSINESS ENVIRONMENT D1. Evaluate the influence that different stakeholders exert in one of organisations Select organisation: Tesco Tesco is a large international organisation that it has stores where across 12 countries such as Asia, Europe and North America. Tesco is a public limited company that it is owned by shareholders. The purposes of Tesco is to make profit by selling products to customers and continue to expand in other countries. Key stakeholders * Customers: Customers are stakeholders of Tesco because they are interesting on the products that the company provide. Customers want the Tesco to provide high quality products. Customers often describe what they have bought. Customers can influence the purpose of Tesco that If the business just provide products to customers and do not know what customers want, customers world not like to spend money on the organisation’s products or service. * Employees: Employees are the stakeholders on businesses because they want the company to provide good working environment to them. Employees want the ob\rganisation to provide a good working environment and good conditions. Employees can impact purposes of Tesco that if Tesco does not meet employees’ needs, employees will not like to work in Tesco and they may not provide good work for the organisation. * Suppliers: Suppliers are the stakeholders on businesses because they need to...
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