Who is an employee?
An employee is a person who works for an organization with an agreed salary. An employer provides the required tools to an employee to perform job. The states provide the employee protection laws that an employer is required to follow. An employee is different than an employee, compared to an agent or a subcontractor. As subcontractor works independently, whereas an employee works under the instruction.
An employer notifies to certain authorities and withhold taxes on behalf of the city, state, and the federal authorities for an employee.
What is the role of an employee in the business?
An employee is the asset for a company and an employee has the power to fold and unfold an organization. Employee helps to increase an organization's sales, which lower the cost of the product and increase profit.
What information does an employee provide to an employer?
Generally, the following information provide to an employer.
- Email address
- Complete Name
- Social Security Number (If applicable)
- Complete Home Address
- Form I-9
- Form W-4
What obligation does an employer has to maintain for an employee?
Generally, an employer maintains following duties for an employee.
- Withhold taxes of an employee
- Maintain insurances including liability, workers’ compensation, and disability.
- Issue W-2 to employees
- Employment engagement letter
- Maintaining time sheet
Employee Aging Report:
Employee aging report must be reconciled frequently, which contains each employee basic information, salary activities and the trend.
The employee aging report is generally used:
- To make sure taxes are withheld correctly.
- To verify if allocation of the taxes done correctly.
- To reconcile overpayment or underpayment to an employee should be corrected.
- To include in cashflow statement.
- To view trend of the prior periods.
