Do’s and don’ts for paying part-time employees
Do’s and don’ts for paying part-time employees Source: The American Institute of Professional Bookkeepers ; Bookkeeping Tips Newsletter Do withhold FICA on part-timers, including retirees. Even if someone who works for you part-time also has a full-time job where they have had 100% of their FICA withheld for the year, you must withhold the full amount of FICA from their pay. These individuals can obtain a refund of any overpaid FICA on their 1040. Similarly, if a retiree receiving Social Security benefits works for you, say, one day a week, you must withhold FICA. Don’t assume former employees who return part-time are Independent Contractors. If they do the same job they did before they left, especially in the same tax year, they are employees, not independent contractors. Don't base worker status on length of service. A worker who fits the definition of “employee” is...