In: Accounting
What are some attributes that may distinguish an employee from an independent contractor? Do you think it is ethical to pay employees "under" the table and give them a 1099? What if any are the effects of the new stimulus package on 1099 employees How much will the stimulus package provide to each family, what are the regulations regarding receiving payment and will it be taxable?
An employee and an independent contractor both are very different. An employee has to work under the limits set by a company. Whereas a contractor is free and independent to do work on his own.
An independent contractor can take his own decisions on what to do and what not to do whereas an employee hasto see what is right for his organization and to what is he entitled to do
The major difference in attribute of both are that employee is under an organization whereas an independent contractor is free and not under anyone.
A contractor need not follow instructions and can decide what to do what he feels is right. He can choose his responsibilities on his own. But an employee has to do what he is told to do by his higher authorities..
It is not at all ethical to pay employee under the table. Giving employees 1099 means turning them into an independent contractors. This is illegal to do. Employees are made to do work for someone else by paying them unethically. This should be prohibited. If any organization get to know this, he will for sure remove that employee and strict action would be taken against the one who paid to his employee.
This new stimulus package will make employees and independent contractors equal as both are given benefits regardless of who they are.
There are amounts sanctioned for the one who are unemployed.
If we talk about payments being received, here are some details regarding that.
There will be just one payment received by an individual. But additional payments can be ordered and added up in future bills.
If you are declared as dependent, one cannot be entitled to receive payment even if he or she is an adult.
The single person being adult having sociasl security number will get full payment if they have adjusted gross income $75000 or less than that.
Couples who are married and are having no children will receive $2400, if they are earning $150000 or less than that.
The taxpayers who are filing as household head would be getting the full payment if they have earning $112500 or less than that.
The amounts mentioned here, if the income or earning exceeds this, payment decreases eventually.
If a single person is earning $99000, no payment is made thereforeth. Also if a married couple with no children is earning $198000, no payment is made in this case also.
These were the regulations for receiving payments.