Today's workforce offers many choices for the types of workers a company employs. From employees to independent contractors to temporary employees there are many different options for getting the help you need. However, it is important to understand the pay, benefit and tax implications surrounding each of these employee types. This webinar covers each type and when they make the most sense for your business.

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2. Understanding Worker Classification

3. Understanding Worker Classification
 Fair Labor Standards Act
(FLSA)
 Minimum Wage
 Overtime Rules
 Child Labor
 Establishes recordkeeping
rules
 For the FLSA to apply
there must be a
employment relationship
between employer and
employee
 Federal/State Tax
 Social Security
 Unemployment Tax
 Medicare

4. Understanding Worker Classification
Exempt vs Non-Exempt
 $455 per week “free and clear”
 Regular payments – no
fluctuating
 Is paid same amount in weeks
any work is performed
 Compensation can not be
reduced for poor quality or
quantity of work
 Primary duty includes managing
the enterprise or recognized
department (or exercises
judgment in this manner)
 Consistently manages two or
more people

5. Photo:
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Understanding Worker Classification
BEHAVIORAL
CONTROL
FINANCIAL
CONTROL
RELATIONSHIP
OF THE PARTIES
INDEPENDENT CONTRACTOR

6. Understanding Worker Classification
Even though it
includes actual
operation of the
facilities of the
employer, it is
similar to training
which would be
given in an
educational
environment.
The internship experience is for the benefit of the intern
The employer
that provides the
training derives
no immediate
advantage from
the activities of
the intern;
and on occasion
its operations
may actually be
impeded.
The intern is
not
necessarily
entitled to a
job at the
conclusion of
the internship
The employer and
the intern
understand that
the intern is not
entitled to wages
for the time spent
in the internship
The intern does
not displace
regular
employees, but
works under close
supervision of
existing staff

7. Understanding Worker Classification
On Payroll Staffing Agency
 Employer deducts
taxes
 Employer workers
comp coverage covers
employees
 Language regarding
temporary status needs
to be abundantly clear
 Agency deducts taxes
 Agency is typically
responsible for w/c*
 Faster turn around for
new employees

8. Understanding Worker Classification

9. Understanding Worker Classification

10. Understanding Worker Classification
Questions or comments? Since FLSA is so dependent upon your
specific work environment email or phone may be the best way for me
to answer questions.
sabrina@acaciahrsolutions.com
847.893.9756