Form Rt-800002 - Employer Guide To Reemployment Tax (Page 4 of 18) in pdf

Coverage Requirements

Employer Examples

Agricultural Employers

Domestic Employers

General Employers

Subject to

Reemployment Tax

$10,000 payroll in any

$1,000 payroll in any

$1,500 payroll in any

quarter or

quarter

quarter or

5 employees for 20

1 employee for 20

weeks within a calendar

year

Employer A

$5,000 payroll & 5

$1,500 payroll

$1,000 payroll & 1

Domestic coverage

employees for 10 weeks

employee for 4 weeks

only

Employer B

$10,000 payroll & 5

$2,000 payroll

$1,500 payroll & 1

Agricultural,

employees for 20 weeks

employee for 15 weeks

Domestic, and

General coverage

Employer C

$25,000 payroll & 18

$500 payroll

$1,000 payroll & 1

Agricultural coverage

employees for 20 weeks

employee for 15 weeks

which includes the

general employee

Employer D

$5,000 payroll & 2

$200 payroll

$10,000 payroll &

General coverage

employees for 10 weeks

4 employees for 10

only

weeks

an employer is paid solely by commission does not

operator under which the crew leader is designated

remove the person from the employer’s direction

as an employee of the farm operator.

and control. The law provides specific exemptions

An independent contractor is not subject to the

for real estate agents, insurance agents, and barbers

will and control of the employer. The employer does

who are paid solely by commission. If they are paid

not have the right to control or direct the manner

by salary only or by salary and commission, both are

or method of performance, although the results

taxable and the exemption does not apply.

to be accomplished are controlled. Independent

An employing unit is the person, limited liability

contractors hold themselves out to the public as

company, partnership, corporation, or other legal

such. Generally, they furnish materials as well as

entity for whom service is performed. Common law

labor and use their own tools in the performance

recognizes a employer-employee relationship in the

of the work. Services performed by independent

contractors cannot be summarily terminated without

exercise of will and control by the employer over the

employees. The employer can direct what services

recourse. A contract for labor only will normally be

will be performed, when, where and how they will be

considered a contract of employment. How the

performed, and can set standards for the quality of

worker is treated, not a written contract, determines

work to be performed.

employment status.

In agricultural labor, either the farm operator or

Employment Not Covered

the crew leader may be considered the employer.

Several types of employment are not covered for

An individual must hold a valid certification of

reemployment assistance purposes and the workers

registration under the Farm Labor Contractor

performing these types of employment are not

Registration Act of 1993 to be a crew leader. The

considered in determining an employer’s liability.

crew leader is the employer if he or she (1) provides

Some of these exemptions include:

the crew, (2) supervises the work being performed by

•

Services by a sole proprietor or a partner,

the crew, (3) has the right to terminate employment,

or a partner or a member of a limited liability

and (4) is responsible for the payment of wages to

company classified for federal income tax

the workers.

purposes as either a partnership or a sole

The farm operator is the employer if (1) the

proprietorship.

individual is an employee of the farm operator under

•

Services by employees of a church,

common law rules of employer and employee, or (2)

convention, or association of churches; or of

the worker is furnished by the crew leader, but is not

organizations operated for religious purposes

treated as an employee of the crew leader, i.e., the

and which are operated, supervised,

crew leader is acting on behalf of the farm operator

controlled, or principally supported by

rather than as an employer, or (3) the crew leader

a church, convention, or association of

has entered into a written agreement with the farm

churches.

Department of Revenue, Employer Guide to Reemployment Tax, Page 4

Form Rt-800002 - Employer Guide To Reemployment Tax Page 4

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