Casual Labor

phylpearsall

An employee quits after they've worked for only 3 - 4 hours. Is it necessary to treat their pay the same as regular employees i.e. do we need to withhold Federal, State, Social Security, etc. and report them on quarterly and annual reports? Or, can we pay the gross amount earned through regular payables and call it good?

marc

In my opinion, you pay them normally and withhold the taxes. Also, include them in your workers comp and unemployment insurance reports.

If you don't and you get caught, fines and penalties may apply.

Hunter1

We recently had a heated discussion on this subject. It's in the Wage and Hour section under "Contract Labor vs Payroll" if you're interested. Welcome to the Forum.

HRinNH

3 hrs or 3 yrs, what's the difference in the eyes of the IRS? They want their $$.

Cheryl C.

E Wart

Call your alternate employment (temp) agency and see if they will payroll them for you so you don't have to do all of this.

E Wart