It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.
Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.
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In August, 2011, President Obama called on Congress to enact tax credits that will help get veterans back to work. The Returning Heroes Tax Credit provides businesses that hire unemployed veterans with a maximum credit of $5,600 per veteran, and the Wounded Warriors Tax Credit offers businesses that hire veterans with service-connected disabilities with a maximum credit of $9,600 per veteran.
With the increasing emphasis the U.S. Department of Labor has been putting on errors in the application of the Fair Labor Standards Act (FLSA) it is important to understand how you may go wrong. Here are 5 of the most common wage and hour mistakes many employers make.
Many employees believe they are entitled to holiday pay, even if they do not work on the holiday. This is not the case. In fact, neither the Fair Labor Standards Act ("FLSA") nor most state laws, including Ohio, require a private employer to pay hourly employees for working or not working on holidays (federal or otherwise). (For employers in Massachusetts, however, be sure to check your Blue laws.)