Employee - Revision history

User at 12:46, 20 April 2023

2023-04-20T12:46:22Z

User at 18:50, 5 March 2021

2021-03-05T18:50:17Z

User at 18:49, 5 March 2021

2021-03-05T18:49:34Z

User at 18:49, 5 March 2021

2021-03-05T18:49:03Z

User at 18:31, 5 March 2021

2021-03-05T18:31:19Z

User at 18:16, 5 March 2021

2021-03-05T18:16:07Z

User at 17:54, 5 March 2021

2021-03-05T17:54:20Z

User at 17:47, 5 March 2021

2021-03-05T17:47:50Z

User at 16:29, 5 March 2021

2021-03-05T16:29:35Z

User at 16:04, 5 March 2021

2021-03-05T16:04:04Z

@@ Line 1: / Line 1: @@
-An '''employee''' is an individual hired by an [[Organization|organization]] or [[Business|business]] owner to do a specific job.
+An '''employee''' is an individual hired by an organization or business owner to do a specific job.
 According to the IRS "Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed." The IRS provides the following example:<br />
-Donna Lee is a salesperson employed on a full-time basis by Bob Blue, an auto dealer. She works 6 days a week, and is on duty in Bob's showroom on certain assigned days and times. She appraises trade-ins, but her appraisals are subject to the sales manager's approval. Lists of prospective [[Customer|customers]] belong to the dealer. She has to develop leads and report results to the sales manager. Because of her experience, she requires only minimal assistance in closing and financing sales and in other phases of her work. She is paid a commission and is eligible for prizes and bonuses offered by Bob. Bob also pays the cost of health insurance and group-term life insurance for Donna. Donna is an employee of Bob Blue.<ref>Definition of an Employee [https://www.irs.gov/businesses/small-businesses-self-employed/employee-common-law-employee IRS.gov]</ref>
+Donna Lee is a salesperson employed on a full-time basis by Bob Blue, an auto dealer. She works 6 days a week, and is on duty in Bob's showroom on certain assigned days and times. She appraises trade-ins, but her appraisals are subject to the sales manager's approval. Lists of prospective customers belong to the dealer. She has to develop leads and report results to the sales manager. Because of her experience, she requires only minimal assistance in closing and financing sales and in other phases of her work. She is paid a commission and is eligible for prizes and bonuses offered by Bob. Bob also pays the cost of health insurance and group-term life insurance for Donna. Donna is an employee of Bob Blue.<ref>[https://www.irs.gov/businesses/small-businesses-self-employed/employee-common-law-employee Definition of an Employee]</ref>
-__TOC__
+== The Three Part Test to Determine Employee Status<ref>[https://www.patriotsoftware.com/blog/payroll/who-is-an-employee/ How is the Employee Status of an Individual determined?]</ref> ==
 When determining a worker’s status, you must consider your control over them. If you have great control over the worker, they are probably an employee. To help you examine control, you can use a three-part test from the IRS called common law rules. The three parts are explained below.
 *Behavioral control: Do you control or have the right to control what the worker does and how the worker does their job? If so, the worker might be an employee.
@@ Line 16: / Line 13: @@
-== What Employees Do<ref>More About Employees and Their Jobs [https://www.thebalancecareers.com/what-is-an-employee-1918111 the balance]</ref> ==
+== What Employees Do<ref>[https://www.thebalancecareers.com/what-is-an-employee-1918111 More About Employees and Their Jobs]</ref> ==
-Each employee has a specific job to accomplish that is often defined by a job description. In responsible organizations, a performance development planning process defines the work of the employee and the organization’s expectation’s for the employee’s performance. It should also help employees set goals and track their performance. Additionally, the [[Performance Management|performance management]] system should help employees develop their ongoing skills and adopt a career path.
+Each employee has a specific job to accomplish that is often defined by a job description. In responsible organizations, a performance development planning process defines the work of the employee and the organization’s expectation’s for the employee’s performance. It should also help employees set goals and track their performance. Additionally, the performance management system should help employees develop their ongoing skills and adopt a career path.
-An employee works within a functional area or department such as [[Marketing|marketing]] or [[Human Resources]]. An employee has a boss, the person he or she reports to and takes direction from, usually a [[Manager|manager]] or supervisor. An employee should have the expectation that he or she will receive reasonable, professional treatment from the manager. An employee also has coworkers who work with them to accomplish the work of the department.
+An employee works within a functional area or department such as marketing or Human Resources. An employee has a boss, the person he or she reports to and takes direction from, usually a manager or supervisor. An employee should have the expectation that he or she will receive reasonable, professional treatment from the manager. An employee also has coworkers who work with them to accomplish the work of the department.
-The employee has a workstation or an office in which he or she accomplishes the job. The employer supplies the employee with the tools and equipment necessary to perform work such as a [[Computer|computer]], telephone, [[Mobile Device|cell phone, laptop]], desk, and supplies.
+The employee has a workstation or an office in which he or she accomplishes the job. The employer supplies the employee with the tools and equipment necessary to perform work such as a computer, telephone, cell phone, laptop, desk, and supplies.
-In forward-thinking organizations, the employee receives frequent [[Performance Appraisal|performance feedback]] from the manager, rewards and recognition, and a reasonable benefits package.
+In forward-thinking organizations, the employee receives frequent performance feedback from the manager, rewards and recognition, and a reasonable benefits package.
-== Employee Vs. Contractor<ref>The Difference between an Employee and a Contractor</ref> ==
+== Employee Vs. Contractor ==
 The IRS discusses several types of non-employees. These are individuals who work for someone else but are not employees. The most common type of non-employee is an independent contractor. Independent contractors are self-employed, and the relationship between the contractor and the employer is technically a relationship between two businesses. For example, if you work as a graphic designer for a company on a per-project basis, you are an independent contractor, not an employee.
@@ Line 57: / Line 54: @@
 *Hybrid test. The hybrid test combines elements of the common law test and the economic realities test, in keeping with the accepted view of all courts that the totality of the circumstances surrounding the relationship between worker and employer should be examined to determine whether the worker is an employee or an independent contractor. In practice, the hybrid test considers the economic realities of the work relationship as a critical factor in the determination, but focuses on the employer’s right to control the work process as a determinative factor. The hybrid test is applied frequently in cases brought under Title VII of the Civil Rights Act of 1964, which prohibits employers from discriminating against employees on the basis of race, color, religion, sex, or national origin.
-The proper classification of a worker as an employee or independent contractor at the beginning of an employment relationship is important to both employers and workers with respect to their obligations and protections under Federal law. Although the classification does depend on the Federal law being applied, the overriding factor is who has the “right to control” the work process, and the relationship is based upon all of its characteristics, regardless of what label the employer applies to the worker.<ref>Classification Test of a Worker as an Employee or Independent Contractor [https://www.bls.gov/opub/mlr/2002/01/art1full.pdf bls.gov]</ref>
+The proper classification of a worker as an employee or independent contractor at the beginning of an employment relationship is important to both employers and workers with respect to their obligations and protections under Federal law. Although the classification does depend on the Federal law being applied, the overriding factor is who has the “right to control” the work process, and the relationship is based upon all of its characteristics, regardless of what label the employer applies to the worker.<ref>[https://www.bls.gov/opub/mlr/2002/01/art1full.pdf Classification Test of a Worker as an Employee or Independent Contractor]</ref>
-== Types of Employees<ref>What are the Different Types of Employees? [https://www.indeed.com/hire/c/info/employee-definition?aceid=&gclid=Cj0KCQiAyoeCBhCTARIsAOfpKxjOKIeUbV2pM2kWKS35Vcto0Lx0MXxXTB0gQiHVp_U0KV4cVXn6ec8aAkpYEALw_wcB Indeed]</ref> ==
+== Types of Employees<ref>[https://www.indeed.com/hire/c/info/employee-definition?aceid=&gclid=Cj0KCQiAyoeCBhCTARIsAOfpKxjOKIeUbV2pM2kWKS35Vcto0Lx0MXxXTB0gQiHVp_U0KV4cVXn6ec8aAkpYEALw_wcB What are the Different Types of Employees?]</ref> ==
-You can hire multiple classifications of workers depending on the needs of your company. Having different types of employees on your team allows you to adjust your staffing needs based on demand. As a business owner, you should understand what differentiates each type of employee so you can stay in line with labor and tax laws. An employee’s classification determines the following:
+You can hire multiple classifications of workers depending on your company's needs. Having different types of employees on your team allows you to adjust your staffing needs based on demand. As a business owner, you should understand what differentiates each type of employee so you can stay in line with labor and tax laws. An employee’s classification determines the following:
 *Eligibility for overtime pay
 *Entitlement to health insurance and other benefits
@@ Line 74: / Line 71: @@
-== Employee Lifecycle<ref>What is the employee lifecycle? [https://enboarder.com/2018/12/11/employee-engagement-lifecycle/ Enboarder]</ref> ==
+== Employee Lifecycle<ref>[https://enboarder.com/2018/12/11/employee-engagement-lifecycle/ What is the employee lifecycle?]</ref> ==
 The employee lifecycle refers to a natural progression of phases in the way an employee interacts with your organization. The employee lifecycle consists of six stages:
 *Attraction
@@ Line 114: / Line 111: @@
 == References ==
 <references/>

← Older revision		Revision as of 18:50, 5 March 2021
Line 84:		Line 84:


−	[[File:Employee Lifecycle.png\|~~400px~~\|Employee Lifecycle]]<br />	+	[[File:Employee Lifecycle.png\|300px\|Employee Lifecycle]]<br />
	source: Enboarder		source: Enboarder

← Older revision		Revision as of 18:49, 5 March 2021
Line 3:		Line 3:
	According to the IRS "Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed." The IRS provides the following example:<br />		According to the IRS "Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed." The IRS provides the following example:<br />
	Donna Lee is a salesperson employed on a full-time basis by Bob Blue, an auto dealer. She works 6 days a week, and is on duty in Bob's showroom on certain assigned days and times. She appraises trade-ins, but her appraisals are subject to the sales manager's approval. Lists of prospective [[Customer\|customers]] belong to the dealer. She has to develop leads and report results to the sales manager. Because of her experience, she requires only minimal assistance in closing and financing sales and in other phases of her work. She is paid a commission and is eligible for prizes and bonuses offered by Bob. Bob also pays the cost of health insurance and group-term life insurance for Donna. Donna is an employee of Bob Blue.<ref>Definition of an Employee [https://www.irs.gov/businesses/small-businesses-self-employed/employee-common-law-employee IRS.gov]</ref>		Donna Lee is a salesperson employed on a full-time basis by Bob Blue, an auto dealer. She works 6 days a week, and is on duty in Bob's showroom on certain assigned days and times. She appraises trade-ins, but her appraisals are subject to the sales manager's approval. Lists of prospective [[Customer\|customers]] belong to the dealer. She has to develop leads and report results to the sales manager. Because of her experience, she requires only minimal assistance in closing and financing sales and in other phases of her work. She is paid a commission and is eligible for prizes and bonuses offered by Bob. Bob also pays the cost of health insurance and group-term life insurance for Donna. Donna is an employee of Bob Blue.<ref>Definition of an Employee [https://www.irs.gov/businesses/small-businesses-self-employed/employee-common-law-employee IRS.gov]</ref>
		+
		+
		+	__TOC__

@@ Line 36: / Line 36: @@
-[[File:Tests determining employee status.png|400px|Tests determining employee status]]<br />
+[[File:Tests determining employee status.png|500px|Tests determining employee status]]<br />
 source: US Bureau of Labor Statistics
@@ Line 42: / Line 42: @@
 *Common-law test. The common-law test was developed on the basis of the traditional legal concept of agency, which, in an employment context, consists of a relationship wherein one person (the employee) acts for or represents another (the employer) by the employer’s authority. The common-law test involves the evaluation of 10 factors to determine whether a worker is an employee, with no one factor dispositive, but with the determination centering on who has the right to control the work process. Exhibit 2 shows the 10 factors used in the common-law test.
-[[File:Factors of worker status under common law.png|400px|Factors of worker status under common law]]<br />
+[[File:Factors of worker status under common law.png|500px|Factors of worker status under common law]]<br />
 source: US Bureau of Labor Statistics
@@ Line 49: / Line 49: @@
-[[File:Factors of worker status under economic realities.png|400px|Factors of worker status under economic realities]]<br />
+[[File:Factors of worker status under economic realities.png|500px|Factors of worker status under economic realities]]<br />
 source: US Bureau of Labor Statistics
@@ Line 55: / Line 55: @@
 *Hybrid test. The hybrid test combines elements of the common law test and the economic realities test, in keeping with the accepted view of all courts that the totality of the circumstances surrounding the relationship between worker and employer should be examined to determine whether the worker is an employee or an independent contractor. In practice, the hybrid test considers the economic realities of the work relationship as a critical factor in the determination, but focuses on the employer’s right to control the work process as a determinative factor. The hybrid test is applied frequently in cases brought under Title VII of the Civil Rights Act of 1964, which prohibits employers from discriminating against employees on the basis of race, color, religion, sex, or national origin.
 The proper classification of a worker as an employee or independent contractor at the beginning of an employment relationship is important to both employers and workers with respect to their obligations and protections under Federal law. Although the classification does depend on the Federal law being applied, the overriding factor is who has the “right to control” the work process, and the relationship is based upon all of its characteristics, regardless of what label the employer applies to the worker.<ref>Classification Test of a Worker as an Employee or Independent Contractor [https://www.bls.gov/opub/mlr/2002/01/art1full.pdf bls.gov]</ref>

@@ Line 34: / Line 34: @@
 The courts, on the other hand, have developed three tests to be used in determining a worker’s status: the common-law test, the economic
 realities test, and a hybrid test that incorporates various elements of both of those tests. Because the tests have been applied to different Federal statutes, the characterization of a worker as an employee or an independent contractor can vary, depending on which statute is being applied. As a result, the same person can be classified as an employee under one test and the relevant Federal laws to which that test is applied, but as an independent contractor under another test and its relevant Federal laws. Furthermore, different tests are applied to the same Federal law, depending on which jurisdiction a case is heard in. However, because each of the tests evaluates the totality of the circumstances behind the employment relationship, the overlap in the tests is substantial. Exhibit 1. offers a brief summary of the three tests.
 *Common-law test. The common-law test was developed on the basis of the traditional legal concept of agency, which, in an employment context, consists of a relationship wherein one person (the employee) acts for or represents another (the employer) by the employer’s authority. The common-law test involves the evaluation of 10 factors to determine whether a worker is an employee, with no one factor dispositive, but with the determination centering on who has the right to control the work process. Exhibit 2 shows the 10 factors used in the common-law test.

← Older revision		Revision as of 18:16, 5 March 2021
Line 31:		Line 31:

	The IRS has an intricate system of determining the proper classification for a worker, but most businesses and workers can make the determination themselves. The IRS has common law rules to help guide those determinations. The common laws are broadly broken down into three categories: behavioral factors, financial factors, and the type of relationship.		The IRS has an intricate system of determining the proper classification for a worker, but most businesses and workers can make the determination themselves. The IRS has common law rules to help guide those determinations. The common laws are broadly broken down into three categories: behavioral factors, financial factors, and the type of relationship.
		+
		+	The courts, on the other hand, have developed three tests to be used in determining a worker’s status: the common-law test, the economic
		+	realities test, and a hybrid test that incorporates various elements of both of those tests. Because the tests have been applied to different Federal statutes, the characterization of a worker as an employee or an independent contractor can vary, depending on which statute is being applied. As a result, the same person can be classified as an employee under one test and the relevant Federal laws to which that test is applied, but as an independent contractor under another test and its relevant Federal laws. Furthermore, different tests are applied to the same Federal law, depending on which jurisdiction a case is heard in. However, because each of the tests evaluates the totality of the circumstances behind the employment relationship, the overlap in the tests is substantial. Exhibit 1. offers a brief summary of the three tests.
		+	*Common-law test. The common-law test was developed on the basis of the traditional legal concept of agency, which, in an employment context, consists of a relationship wherein one person (the employee) acts for or represents another (the employer) by the employer’s authority. The common-law test involves the evaluation of 10 factors to determine whether a worker is an employee, with no one factor dispositive, but with the determination centering on who has the right to control the work process. Exhibit 2 shows the 10 factors used in the common-law test.

← Older revision		Revision as of 17:47, 5 March 2021
Line 11:		Line 11:
	*Type of relationship: Are there any written contracts or employee type benefits? These include things like retirement plans, insurance, and vacation and sick pay. Will your relationship with the worker continue? Is the work performed a key aspect of your business? If you answered yes to these things, then the worker might be an employee.		*Type of relationship: Are there any written contracts or employee type benefits? These include things like retirement plans, insurance, and vacation and sick pay. Will your relationship with the worker continue? Is the work performed a key aspect of your business? If you answered yes to these things, then the worker might be an employee.
	You must consider all three parts of the test. One factor doesn’t weigh more than the others. Also, there is not a set number of factors that a worker needs to meet to be considered an employee. For example, a worker might only meet two parts of the test and still be classified as a common law employee.		You must consider all three parts of the test. One factor doesn’t weigh more than the others. Also, there is not a set number of factors that a worker needs to meet to be considered an employee. For example, a worker might only meet two parts of the test and still be classified as a common law employee.
		+
		+
		+	== What Employees Do<ref>More About Employees and Their Jobs [https://www.thebalancecareers.com/what-is-an-employee-1918111 the balance]</ref> ==
		+	Each employee has a specific job to accomplish that is often defined by a job description. In responsible organizations, a performance development planning process defines the work of the employee and the organization’s expectation’s for the employee’s performance. It should also help employees set goals and track their performance. Additionally, the [[Performance Management\|performance management]] system should help employees develop their ongoing skills and adopt a career path.
		+
		+	An employee works within a functional area or department such as [[Marketing\|marketing]] or [[Human Resources]]. An employee has a boss, the person he or she reports to and takes direction from, usually a [[Manager\|manager]] or supervisor. An employee should have the expectation that he or she will receive reasonable, professional treatment from the manager. An employee also has coworkers who work with them to accomplish the work of the department.
		+
		+	The employee has a workstation or an office in which he or she accomplishes the job. The employer supplies the employee with the tools and equipment necessary to perform work such as a [[Computer\|computer]], telephone, [[Mobile Device\|cell phone, laptop]], desk, and supplies.
		+
		+	In forward-thinking organizations, the employee receives frequent [[Performance Appraisal\|performance feedback]] from the manager, rewards and recognition, and a reasonable benefits package.
		+
		+
		+	== Employee Vs. Contractor<ref>The Difference between an Employee and a Contractor</ref> ==
		+	The IRS discusses several types of non-employees. These are individuals who work for someone else but are not employees. The most common type of non-employee is an independent contractor. Independent contractors are self-employed, and the relationship between the contractor and the employer is technically a relationship between two businesses. For example, if you work as a graphic designer for a company on a per-project basis, you are an independent contractor, not an employee.
		+
		+	The IRS has an intricate system of determining the proper classification for a worker, but most businesses and workers can make the determination themselves. The IRS has common law rules to help guide those determinations. The common laws are broadly broken down into three categories: behavioral factors, financial factors, and the type of relationship.

← Older revision		Revision as of 16:29, 5 March 2021
Line 1:		Line 1:
−	An '''employee''' is an individual hired by an organization or business owner to do a specific job.	+	An '''employee''' is an individual hired by an [[Organization\|organization]] or [[Business\|business]] owner to do a specific job.
		+
		+	According to the IRS "Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed." The IRS provides the following example:<br />
		+	Donna Lee is a salesperson employed on a full-time basis by Bob Blue, an auto dealer. She works 6 days a week, and is on duty in Bob's showroom on certain assigned days and times. She appraises trade-ins, but her appraisals are subject to the sales manager's approval. Lists of prospective [[Customer\|customers]] belong to the dealer. She has to develop leads and report results to the sales manager. Because of her experience, she requires only minimal assistance in closing and financing sales and in other phases of her work. She is paid a commission and is eligible for prizes and bonuses offered by Bob. Bob also pays the cost of health insurance and group-term life insurance for Donna. Donna is an employee of Bob Blue.<ref>Definition of an Employee [https://www.irs.gov/businesses/small-businesses-self-employed/employee-common-law-employee IRS.gov]</ref>
		+
		+
		+	== The Three Part Test to Determine Employee Status<ref>How is the Employee Status of an Individual determined? [https://www.patriotsoftware.com/blog/payroll/who-is-an-employee/ Patriot Software]</ref> ==
		+	When determining a worker’s status, you must consider your control over them. If you have great control over the worker, they are probably an employee. To help you examine control, you can use a three-part test from the IRS called common law rules. The three parts are explained below.
		+	*Behavioral control: Do you control or have the right to control what the worker does and how the worker does their job? If so, the worker might be an employee.
		+	*Financial control: Do you control the business aspects of the worker’s job? This includes things like how the worker is paid, whether expenses are reimbursed, and who provides tools and supplies. If you control business aspects, then the worker might be an employee.
		+	*Type of relationship: Are there any written contracts or employee type benefits? These include things like retirement plans, insurance, and vacation and sick pay. Will your relationship with the worker continue? Is the work performed a key aspect of your business? If you answered yes to these things, then the worker might be an employee.
		+	You must consider all three parts of the test. One factor doesn’t weigh more than the others. Also, there is not a set number of factors that a worker needs to meet to be considered an employee. For example, a worker might only meet two parts of the test and still be classified as a common law employee.

← Older revision		Revision as of 16:04, 5 March 2021
Line 1:		Line 1:
−	'''~~Content Coming Soon~~'''	+	An '''employee''' is an individual hired by an organization or business owner to do a specific job.