Are seasonal or temporary workers included in the ACA employee count?
Yes, seasonal and temporary workers are generally included in the Affordable Care Act (ACA) employee count when determining whether an employer is subject to the ACA’s employer mandate to provide health insurance. Key Considerations: Seasonal Workers: The ACA requires that all full-time employees (those working 30 or more hours per week on average) are counted […]
What if a contractor refuses to provide a W-9?
Form W-9, Request for Taxpayer Identification Number and Certification, is a tax form used by individuals and entities to provide their Taxpayer Identification Number (TIN) to a requester. It’s commonly used by businesses to obtain the necessary information for reporting payments to the IRS, such as for independent contractors, freelancers, or other non-employee workers. Here’s […]
Are winnings from online gambling subject to Form W-2G reporting?
Yes, winnings from online gambling can be subject to Form W-2G reporting if certain thresholds are met, just like with traditional in-person gambling. Here’s a breakdown of when Form W-2G applies to online gambling winnings: When Form W-2G Applies to Online Gambling: Reporting Thresholds: Poker winnings: If you win $5,000 or more (after deducting the […]
What if the winner is a non-U.S. resident, and they win a gambling prize in the U.S.?
If a non-U.S. resident (nonresident alien) wins a gambling prize in the United States, specific tax rules apply based on U.S. law. Here’s an outline of the key considerations: Taxation Rules: Withholding Tax: Gambling winnings for non-U.S. residents are subject to a flat 30% withholding tax. This applies to the gross amount of winnings, not […]
What is the difference between directly and indirectly tipped employees?
The difference between directly tipped employees and indirectly tipped employees lies in how they receive tips and their interaction with customers: 1. Directly Tipped Employees: Definition: Employees who receive tips directly from customers. Examples: Waitstaff, bartenders, hotel bellhops, and barbers. How Tips Are Received: Customers hand them cash tips or leave tips on credit cards. […]
What businesses are required to report using Form 8027?
Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, is required to be filed by employers in industries where tipping is customary. Here are the key requirements for businesses that must file this form: Food or Beverage Establishments: The business must be engaged in providing food or beverages for consumption on the […]
What is the “employer mandate” under the ACA?
The employer mandate under the Affordable Care Act (ACA), also known as the Employer Shared Responsibility Provision, requires certain employers to offer health insurance to their employees or face potential penalties. It is aimed at ensuring that larger employers provide affordable health coverage to their workforce. Here’s a breakdown: Key Elements of the Employer Mandate: […]
