Assignment: Legal and Tax Issues in Hiring
Analyze the following in a minimum of 1,400 words regarding legal and tax issues in hiring.
The following questions deal with the regulation and legal consequences associated with running an organization. Consider organizations that are involved in traditional entrepreneurship, social entrepreneurship (Social entrepreneurship organizations look for innovative solutions to society's most pressing social problems), and intrapreneurs in a traditional organization:
• Is it easier to be practice social entrepreneurship in a privately owned company?
• Who is an agent of a company? Analyze the legal effect of classifying employees as agents of a company.
• What are some legal and tax differences between classifying people working for the company as independent contractors and employees?
• What are the consequences of employment discrimination laws on the employer-employee relationship?
• Are employment agreements important?
• How can we create dynamic organizational structures by understanding legal and tax issues?
• How do top companies create dynamic organizations for their employees? How can large companies benefit from being more entrepreneurial?
Cite a minimum of 2 peer reviewed reference from the University of Phoenix Library.
Format consistent with APA guidelines.
Individual Assignment: Legal and Tax Issues in Hiring Employees
Purpose of Assignment
Corporations hire dedicated HR professionals and labor attorneys to help them stay in compliance with labor authorities. A misunderstanding of the labor requirements or an unintentional error could cost an organization a significant amount in damages. While intrapreneurs may have a better understanding of legal and tax issues in hiring employees because there's an HR team on staff, entrepreneurs and social entrepreneurs are not automatically inclined to think of these issues. This assignment provides students an opportunity to demonstrate their understanding of how legal and tax issues in hiring employees impacts intrapreneurs, social entrepreneurs, and entrepreneurs. Students must use their critical thinking skills to evaluate the issue's impact to both the entrepreneur and the employee.
For example, while employers are normally not liable for the payroll withholding of agents who are independent contractors, and the independent contractors are able to claim certain business expenses which may help to lower their tax obligation; misclassifying employees as independent contractors could cost an employer retroactive payroll taxes and penalties, as well as additional attorney fees. On the other hand, independent contractors who are actually employees may now be faced with tax issues of their own and denied certain business tax deductions. Having an understanding of the issues in hiring employees will give students the advantage of insight and prepare them to address these issues head on as effective leaders and innovators in the community.
Resources Required
Refer to pages 488 - 489 of Ch.12, Entrepreneurship, 3rd edition. Students will also provide a peer-reviewed reference from the University of Phoenix Library.