Agenda - Council - 03/11/2014 - Laserfiche WebLink

Home

QUICK REFERENCE GUIDE FOR PUBLIC EMPLOYERS between the employer and the Social Security Administration is subject to social security and Medicare withholding under section 3121(d)(4). For more information, see Publication 963. Casual Laborer Federal tax law does not contain any special provision for a "casual laborer." There is no "grace period" or minimum amount before withholding of employment taxes applies; you must withhold with the first dollar earned by the worker. If, for example, you hire a student to clean up the town dump or a day laborer to cut trees, under conditions of common-law employment, that worker is an employee and you must withhold, report, and pay over income, social security and Medicare taxes. Volunteer Firefighters Volunteer firefighters are considered employees and their remuneration is generally subject to all withholding taxes. However, if the payment is reimbursement for out-of-pocket expenses actually incurred in the course of work, and the payment conforms to the requirements of Reg. 1.62-2 regarding accountable plans, then the payment is excludable from the firefighter's Form W-2. (See the discussion of accountable plans under Fringe Benefits, later.) Election Workers and Officials Payments for services to individuals for election work are exempt from income tax withholding. They may be subject to social security and Medicare tax either under the provisions of a Section 218 Agreement, or by law, if the amount of compensation exceeds an annual threshold ($1,600 in 2013). If payments are subject to income tax, social security, or Medicare withholding, Form W-2 should be furnished to that individual. If the employee has non -election wages from the same employer, the normal Form W-2 reporting rules apply to those wages. For more information about election workers, see Revenue Ruling 2000-6 and Publication 963. Road Commissioners An individual with the title of "road commissioner" is usually an elected or appointed official of the governmental entity, and therefore is subject to the supervision, direction, and discipline characteristic of an employer. In this case, all remuneration that the road commissioner personally receives is wages. The relationship between the employing entity and the commissioner may also allow for a fair rental payment for the use of any large equipment owned by the commissioner. This rental fee for equipment used is not wages and should be agreed upon in advance, and reported to the individual on Form 1099-MISC, box 7. Fair equipment rental rates should be determined and governmental units should be based on fair market value, which is generally what a private company would charge under normal circumstances. 8