New York Times Book Review, Liaquat Ahamed
The build-up of dollars abroad transformed the United States into a gigantic bank, and like any bank, it was vulnerable to a run.
Month: September 2009
Labor Day
Labor Day was established to honor American workers. The form for the celebration of Labor Day was outlined in the first proposal of the holiday: A street parade to exhibit to the public “the strength and esprit de corps of the trade and labor organizations,” followed by a festival for the workers and their families.
The US Department of Labor Wage and Hour Division works to promote and achieve compliance with labor standards to protect and enhance the welfare of the of the nation’s workforce. The FLSA establishes minimum wage, overtime pay, record keeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.
Fans Pay Either Way for TV Blackouts
reports Richard Sandomir in the September 5, 2009, edition of the New York Times. NFL Commissioner Roger Goodell refuses to back down from his position of not waiving the blackout policy for the people of Detroit where the unemployment rate approaches 30%. Goodell is quoted as saying that the 36-year-old blackout policy has been very good for the game, for the fans, and for the teams.
But if enough people can’t afford the tickets, why penalize a team’s hometown fan base with the blackout hammer — making them drive 75 miles outside the market or searching for a pirated TV or Internet signal to catch the game?
Independent Contractor or Employee?
The IRS has compiled the following top ten list of things every business owner should know before classifying a worker as either an employee or independent contractor (IRS Summertime Tax Tip 2009-20, 8/21/09) :
(1) Three characteristics are used by the IRS to determine the relationship between businesses and workers: behavioral control, financial control, and the type of relationship.
(2) Behavioral control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training, or other means.
(3) Financial control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker’s job.
(4) The type of relationship factor relates to how the workers and the business owner perceive their relationship.
(5) If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
(6) If you can direct or control only the result of the work done — and not the means and methods of accomplishing the result — then your workers are probably independent contractors.
(7) Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
(8) Workers can avoid higher tax bills and lost benefits if they know their proper status.
(9) Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
(10) You can learn more about the critical determination of a worker’s status as an independent contractor or employee at the Small Business/Self Employed Tax Center on the IRS website at http://www.irs.gov/businesses/small/index.html. Additional resources include IRS Publication 15-A (http://www.irs.gov/pub/irs-pdf/p15a.pdf), IRS Publication 1779 (http://www.irs.gov/pub/irs-pdf/p1779.pdf), and IRS Publication 1976 (http://www.irs.gov/pub/irs-pdf/p1976.pdf).
- Three characteristics are used by the IRS to determine the relationship between businesses and workers: behavioral control, financial control, and the type of relationship.
- Behavioral control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training, or other means.
- Financial control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker’s job.
- The type of relationship factor relates to how the workers and the business owner perceive their relationship.
- If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
- If you can direct or control only the result of the work done — and not the means and methods of accomplishing the result — then your workers are probably independent contractors.
- Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
- Workers can avoid higher tax bills and lost benefits if they know their proper status.
- Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.
- You can learn more about the critical determination of a worker’s status as an independent contractor or employee at the Small Business/Self Employed Tax Center on the IRS website Additional resources include IRS Publication 15-A , IRS Publication 1779 , and IRS Publication 1976 .