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Abstract

The Internal Revenue Service recently provided guidance for determining whether a technical service specialist is a common law employee, as opposed to an independent contractor, through Revenue Ruling 87-41. The ruling provides guidance for purposes of the Social Security taxes (FICA contributions), federal unemployment taxes assessed under the Federal Unemployment Tax Act (FUTA), and income tax withholding by employers. Further, the ruling is important as it also provides guidance for employers in determining an individual's status in relation to qualified retirement or health plans.

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