About This Chapter
Employee Classification - Chapter Summary
This chapter simplifies the process of understanding employee classification. Use the engaging lessons to strengthen your grasp of different types of employees and issues associated with employee misclassification. Upon completion, you will be able to:
- List and describe types of employee classification
- Discuss the purpose and administration of the Common Law Employment Test
- Explain the impact of and how to correct employee misclassification
- Describe federal and state laws for documentation when hiring employees
- Differentiate between exempt and nonexempt employees
Tailor your study of employee classification to your individual schedule and personal study habits. Our entertaining lessons are available any time using any computer or mobile device. Navigate them in your sequence of choice, and visit them as much as you'd like. When you're ready, check your knowledge of this chapter's topics by taking multiple-choice quizzes and a practice exam.
1. Types of Employee Classification
We'll discuss four main types of employees: full-time, part-time, on-call and intern. We'll also define 'independent contractor' and discuss the difference between independent contractors and employees.
2. Common Law Employment Test: Purpose & Administration
This lesson will discuss what the common law employment test is, why it is used, and how it is administered. It will also cover why classification of employees is integral to a business.
3. Employee Misclassification: Impact & Correction
This lesson will delve into how people are classified intentionally and unintentionally as contractors instead of employees. It will also cover how this impacts the employees and how to correct the issue.
4. Hiring Employees: Federal & State Laws on Documentation
Form I-9, Form W4, additional tax withholding paperwork... there are many required forms for a new hire to complete when they start work. This lesson reviews the mandatory documentation that a job candidate must complete in order to be legally employed.
5. Exempt vs. Non-exempt Employees
Exempt or non-exempt ... what does it mean? In this lesson, we'll break down the exempt versus non-exempt status, what it means to employers, and the significance of each classification for your paycheck.
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Other chapters within the Certified Payroll Professional (CPP): Exam Prep & Study Guide course
- Payroll Processes & Laws
- Calculating Employee Paychecks
- Payroll Withholding & Deductions
- Employer Benefit & Contribution Plans
- Taxable & Nontaxable Employee Benefits
- Preparing, Depositing & Reporting Taxes
- Payroll Accounting Overview
- Payroll Audits & Internal Controls
- Managing a Payroll Department
- Certified Payroll Professional (CPP) Flashcards