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Understanding Employee TypesMonday 01/09/2012
DwayneDwayne Briscoe / Bookkeeping-Results, LLC
Owner / QuickBook Pro Advisor

888-692-2083 / 713-898-1648
Understanding Employee Types

The purpose of understanding Employee Types is to help the employer know the differences and parameters of how you determine the specific type of person you choose to hire.  There are six different types of employees: Common Law, Statutory, Statutory Non, Independent Contractor, Temporary, and Leased.


Common-law Employee

Employers who control what work will be performed, when it will be performed, who performs it, and how it is performed by the employee are considered common-law.


Regular and temporary company employees are eligible under the 1000-hour rule; a requirement under the federal pension and benefits protection law known as ERISA.  It requires that if an employee works at least 1000 hours (25 weeks at 40 hours per week) in a 12-month period, and if the company has a pension or retirement benefit plan, the company must give that employee the chance to participate in the plan.  This doesn’t apply to other types of benefits


Statutory Employee

A person who is paid a salary and commissions based on sales.  Examples: a full-time life insurance sales agent selling one carrier, a full-time salesperson who sells goods which are for resale and used in the operation of the buyer’s business.  FICA (Federal Insurance Contributions Act – Social Security and Medicare) is withheld but not FIT (Federal Income Tax).


Statutory Nonemployee

A person who is compensated on sales and other achievements but not paid hourly, obligated under a written contract, and exempt from payroll tax withholding.  Examples: direct sellers selling to consumers in their home or place of business, licensed real estate agents, and companion sitters.


Independent Contractors

An individual that controls the methods and means of the work performed, and who is exempt from payroll tax withholding.


Temporary Employee

A person employed by a temporary agency who works for an agency client.  The temporary agency and the contracted client are both responsible for the wage-hour laws, including proper payment of payroll taxes.  Examples: clerical, manufacturing, day laborer.


Leased Employee

A professional employed by a professional organization to work for an agency client.  The organization and the contracted client are both responsible for the wage-hour laws, including proper payment of payroll taxes.  Examples: physician, nurse, computer programmer.  Professional organizations, who are properly licensed and certified under applicable statutes, are employers of leased employees.  These staff leasing firms are liable for unpaid wages only if they are contracted to assume such liability




About Our Show Advisor: Dwayne Briscoe is the founder and owner of Bookkeeping-Results, LLC.   Dwayne began his company in January 2007, based on the foundation to educate small business owners and bookkeepers who use QuickBooks®.  Working as a full-charge bookkeeper and trainer in a variety of industries for over 15+ years, he is a certified Pro Advisor with 5 certifications, including Enterprise Solutions and Point of Sale.  He is also an instructor at Brazosport College in Lake Jackson, where he teaches basic accounting, QuickBooks®, and basic payroll, along with hosting his own private classes.


Bookkeeping-Results, LLC has focused more on quality and not quantity for their clients, by paying attention to the details.  Through regular continuing education participation, as well as exploring additional ways of “thinking outside of the box” to help expand people’s knowledge of their own financial well being, it’s important to focus on not only saving the client money but also making the client money.


Special Promotional Offer! For every person who either calls in or e-mails Dwayne that they heard him on the Steven Kay radio show, they will receive a 10-point Year-End Checklist that is not available to the general public.  It covers everything from what to do about W2s that come back from employees who have moved, all the way through the new IRS 1099K credit card being sent out in January.  To make this offer even better, Dwayne will answer one question about QuickBooks for free.

Previously broadcast from:
SKL @ 11/07/2011 - 01/03/2014
CBS Radio's Talk 650 10/12/2009 - 07/01/2011
CNN 650 Radio News 11/08/2006 - 10/08/2009
KSEV AM700 04/04/2005 - 10/30/2006

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