Explanation:
FICA taxes, also referred to as Social Security and Medicare taxes, are levied under the Federal Insurance Contributions Act. 15.3% of an employee's gross income goes toward FICA taxes, with 7.65% going to the employee and 7.65% to the company. Employers and employees each pay 12.4% in Social Security taxes, which are distributed equally.
Explanation:
An IRS form known as a W-4, also known as an "Employee's Withholding Certificate," instructs employers how much tax should be deducted from each employee's paycheck. Employers utilize the W-4 to calculate some payroll taxes and remit the taxes on behalf of employees to the IRS and the state (if applicable).
Explanation:
If you don't give the right taxpayer identification number (TIN) when asked for or if you don't declare interest, dividend, or patronage dividend income, backup withholding can apply to you.
Explanation:
To report pay that is over $600, the company issues a 1099 MISC form to the employee and the IRS.
Explanation:
When an employer engages a worker on a temporary contract basis, that time duration is set by a written agreement between the parties. Employers can recruit temporary contract workers on a short-term or long-term basis depending on the demands of their business.
Explanation:
In accordance with the Fair Labor Standards Act (FLSA), time off for vacation, sick leave, and federal or other holidays is not compensated. The terms of these benefits must be agreed upon by the employer and the employee (or the employee's representative).
