CHECKLIST FOR HIRING AN EMPLOYEE
The following information generally outlines federal and state tax and other requirements that apply to the employment relationship. Detailed descriptions of these requirements, including any exceptions and special requirements that may apply, can be found in information bulletins and instruction booklets published by the agency listed. Addresses and telephone numbers appear in the Resource Directory section of this Guide. For specific advice on individual situations consultation with a qualified professional advisor is strongly recommended. Note: Corporations wholly-owned by the person who also performs services for that business are generally considered to be employers, and that owner is likewise generally considered to be an employee. As explained elsewhere in this Guide, persons working in the construction industry may be treated as employees for purposes of workers’ compensation unless certain conditions are met. 1. Determine whether the worker is an employee. A worker generally is considered an “employee” if the person who obtains the worker’s services has the legal right to control the manner and means of performing the work. A worker may be considered an employee for certain purposes, such as payment of FICA taxes – and not for other purposes, such as income tax withholding. If a worker is an employee, the requirements described in this checklist will apply whether the person is employed full-time or part-time. Before determining that a worker is not an employee it is advisable to consult with your attorney or with the appropriate agency – such as the Internal Revenue Service, Minnesota Department of Revenue, Minnesota Department of Employment and Economic Development, or Minnesota Department of Labor and Industry. Detailed discussion of whether a worker is an employee appears in the section of this Guide titled “Who is an Employee.” The following forms and materials are available to help determine if a worker is an employee. Income tax withholding, FICA and Federal unemployment taxes: Form: SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Publication 15-A, Employers’ Supplemental Tax Guide, (Supplement to Pub. 15, Employer's Tax Guide), provides further information. Available from: Internal Revenue Service. Filed with: The IRS Service Center designated on the form. How often: In response to worker’s request for determination of status for purposes of federal employment taxes and income tax withholding.
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