Section 1 EMPLOYEES V NONEMPLOYEES For all exercises, assume the year is 2021 unless otherwise stated ABC Corporation uses different categories of workers In the table below, list the six categories and indicate with a Yes or No whether ABC Corporation is responsible for FITW, FICA or FUTA on these workers wages Type of worker FITW FICA tax FUTA tax Common Law Employee Statutory Employee Statutory Nonemployee Independent Contractor Referred By A Temporary Agency Leased Employee In the table below, fill in each column In the FICA tax column, circle who pays the tax In the FUTA tax column, indicate who pays the FUTA employer, employee or worker If no FUTA tax is due, write NA (not applicable) Type of worker FICA tax Tax rate (percentage) FUTA tax Employer Worker Employee Employer Worker Employee Employer Worker Employee Employer Worker Employee Employer Worker Employee Employer Worker Employee Every August, Breckim, Inc s secretary Amy goes on vacation for 2 weeks, and her brother Jim fills in for her For payroll purposes, which category of worker is Jim Should Breckim withhold any taxes from Jim If yes, which taxes Does Breckim owe any employment taxes on the amounts it pays Jim Sotto Industrys receptionist, Hector, goes on vacation for 1 week in the summer and a second week in the fall During Hectors absence, Sotto calls a temp agency, which sends Barbara to fill in for him For payroll purposes, what category of worker is Barbara Should Sotto withhold any taxes from the temps pay If yes, which taxes Does Sotto owe any employment taxes on the amounts it pays the temp Kwan, a licensed real estate agent, works for the HomeCo real estate agency Kwan is compensated solely by a commission, which is 6 of the sales price on the properties she sells For payroll purposes, which category of worker is Kwan Should HomeCo withhold any taxes from Kwan If yes, which taxes Does HomeCo owe any taxes on the amounts it pays Kwan Lashawns father, James, broke his hip and requires 24 hour in home assistance Lashawn hires Allison, a certified personal nurse, to take care of James For payroll purposes, which category of worker is Allison Should Lashawn withhold any taxes from Allison If yes, which taxes Does Lashawn owe any taxes on the amounts he pays Allison After working for Xyleen Industries for years, Eric was laid off in 2021 Currently self employed, Eric occasionally fills in at Xyleen, doing the same work he did before he was terminated For payroll purposes, which category of worker is Eric Should Xyleen withhold any taxes from Erics pay If yes, which taxes Does Xyleen owe any taxes on the amounts it pays Eric

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Section 1-EMPLOYEES V. NONEMPLOYEES.

For all exercises, assume the year is 2021 unless otherwise stated.

ABC Corporation uses different categories of workers. In the table below, list the six categories and indicate with a Yes or No whether ABC Corporation is responsible for FITW, FICA or FUTA on these workers wages.

Type of worker	FITW	FICA tax	FUTA tax
*Common-Law Employee*
*Statutory Employee*
*Statutory Nonemployee*
*Independent Contractor*
*Referred By A Temporary Agency*
*Leased Employee*

In the table below, fill in each column. In the FICA tax column, circle who pays the tax. In the FUTA tax column, indicate who pays the FUTA: employer, employee or worker. If no FUTA tax is due, write NA (not applicable).

Every August, Breckim, Inc.s secretary Amy goes on vacation for 2 weeks, and her brother Jim fills in for her.

Sotto Industrys receptionist, Hector, goes on vacation for 1 week in the summer and a second week in the fall. During Hectors absence, Sotto calls a temp agency, which sends Barbara to fill in for him.

Kwan, a licensed real-estate agent, works for the HomeCo real estate agency. Kwan is compensated solely by a commission, which is 6% of the sales price on the properties she sells.

Lashawns father, James, broke his hip and requires 24-hour in-home assistance. Lashawn hires Allison, a certified personal nurse, to take care of James.

After working for Xyleen Industries for years, Eric was laid off in 2021. Currently self-employed, Eric occasionally fills in at Xyleen, doing the same work he did before he was terminated.