PLEASEEE HELP ASAP
Under the Federal Insurance Contributions Act (FICA) every person is an
employer if the person employs one or more individuals for the performance of
services in the United States. The Internal Revenue Service (IRS) test for an
employer/employee relationship is if a business tells, or has a right to tell a
worker how, when, and where to work then the worker is an employee, and if
they meet these tests, must withhold and pay FICA taxes on those employees’
wages. During your life, you may have noticed many employees performing work
for a company without paying FICA taxes (i.e. being paid “under the table”).
Questions to be Answered:
1) What are the concerns from a business perspective on this legally
questionable practice?
2) What are the concerns from a social perspective on this legally
questionable practice?