Decide if Independent Contractor or Employee:
Whether an individual is an employee or an independent contractor is a question of fact and must be determined for each person. If an individual is an employee, then any costs of workers' compensation, social security, and applicable unemployment insurance, as well as federal income tax withholding and Indiana income tax withholding are the responsibility of the employer. If an individual is an independent contractor, these costs and tax withholdings are the contractor's responsibility. Links to guidelines for deciding are found in the reference section.
Get FEIN (Federal Employer Identification Number):
IRS Form SS-4; this form assigns a 9 digit FEIN to the employer.
IRS will send you the required preprinted deposit slips to begin making Social Security and Federal Tax Withholding deposits through your local bank.
Indiana "New Hire" Report:
- Complete and send within 20 days of hiring or rehiring an employee.
BT-1 (Application for Registration as an Indiana Withholding Agent):
- This form registers you to withhold State and applicable County income tax from employees’ wages and the State will send you the WH-1 forms for making State tax deposits.
W-4 and WH-4, Federal and Indiana (Employee’s Withholding Exemption Form):
Employer is required to keep on file.
- W-4: Employee’s Federal Withholding Allowance Certificate.
- WH-4: Indiana Withholding Exemption and County Status Certificate.
Complete Indiana Minor Labor Forms (employees under age 18):
- Intention to Employ/A1 is used by teen to obtain employer and parent/guardian signatures necessary for getting a work permit.
- Work Permit
is required except for minors engaged in farm labor and other limited exceptions.
- Written Parental Permission Form is required for 16 and 17-year who will work beyond normal hour restrictions.
Obtain Workers' Compensation Insurance if required or elected:
- Covers work related injuries and illnesses. Coverage is optional on farm employees.
- Contact a private insurance carrier.
Provide Worker Information, Terms and Conditions of Employment (disclosure):
- For employers subject to Migrant & Seasonal Agricultural Worker Protection Act (MSPA)(see section VI).
Develop and Implement a Hiring and Employment Process That Does Not Illegally Discriminate Against Job Applicants:
- Primarily involves laws enforced by the Equal Employment Opportunity Commission and Indiana Civil Rights Commission.
Display Posters and Required Information:
- Indiana and federal laws require certain posters and information be prominently displayed for employees.
- Visit www.midamservices.org, click on "Labor Laws" and then "Posting." View both the Federal and Indiana sections to find poster compliance information, phone numbers to order and links to download.
|