Question

Elaine is an accountant for Randolph Corporation. She telecommutes and works mainly from her home in Cleveland, Tennessee. Twice a month she travels to Alpharetta, GA meetings at the corporate office. In which state’s payroll factor should Elaine’s compensation be included if:

a) Elaine is an employee and is covered by the qualified retirement plan of her Georgia-based employer?

b) Elaine works as an independent contractor for several clients, including the Georgia-based firm?

c) Elaine is an employee, and for one day each month, she provides accounting services for Randolph’s rental client located in Tennessee?

Answer 1

Let us first understand the meaning of "employee" : An employee is an individual who's actions are controlled by an organisation and who works as per the directions of such organisation. An "Independent contractor" cannt be termed as an employee because he is not under a employment contract.

Only the compensation paid to the employee is included in the pay roll factor. On the basis of the explanation lets answer the following questions:

1. Compensation paid to Elaine will be included in the state Alpharetta GA, Payroll factor because Elaine is an employee of  Randolph Corporation.

2. Compensation paid to Elaine will not be included in any state, Payroll factor because Elaine is not an employee but independent contractor..

3 Compensation paid to Elaine will be included in the state Alpharetta GA, Payroll factor because Elaine is an employee of  Randolph Corporation And compensation shall be paid by Randolph Corporation only.