The following words and terms, when used in this subchapter,
shall have the following meanings, unless the context clearly indicates
otherwise:
(1) Common paymaster--Has the meaning as described
in 26 CFR §31.3121(s)-1.
(2) New hire--The term new hire shall have the meaning
of any employee required to be reported to the State Directory of
New Hires under 453A of the Social Security Act within twenty days
of the employee's first day on the job.
(3) Date of hire--The date of hire for a new employee
is considered to be the first day services are performed for pay by
an individual.
(4) Employee--The term employee means an individual
who is an employee as defined in Chapter 24 of the Internal Revenue
Code (IRC) of 1986 or an independent contractor as defined by the
Internal Revenue Service and whose income is required to be reported
on Form 1099-MISC; and does not include an employee of a federal or
state agency performing counter intelligence functions, if the head
of such agency has determined that reporting pursuant to section 453A
of the Social Security Act with respect to the employee could endanger
the safety of the employee or compromise an ongoing investigation
or intelligence mission. Chapter 24 of the IRC and the regulations
promulgated thereunder define an "employee" as every individual performing
services if the relationship between the individual and the person
for whom the services are performed is the legal relationship of employer
and employee (see IRC section 3401(c) and 26 CFR 31.3401(c)-1(a)).
Generally, the legal relationship of employer and employee exists
when the person for whom the services are performed has the right
to control and direct the individual who performs the services not
only as to the results to be accomplished, but also as to the details
and means by which that result is to be accomplished. 26 CFR 31.3401(c)-1(b).
(5) Employer--In General. The term employer has the
meaning given such term in section 3401(d) of the Internal Revenue
Code of 1986 and includes any governmental entity and any labor organization.
At a minimum, in any case where an employer is required to give an
employee a Form W-2 showing the amount of taxes withheld, the employer
must meet the new hire reporting requirements. Section 3401(d) goes
on to provide in part that "if the person for whom the individual
performs or performed the services does not have control of the payment
of the wages for such services, the term employer means the person
having control of the payment of such wages." Thus, every entity (including
governmental entities and labor organizations) is an employer if the
entity exercises or has the right to exercise control and direction
over an individual who performs or has performed any service for the
entity unless the entity does not have control of the payment of the
employee's wages. In these cases, the entity having control of the
payment of such wages is the "employer." All entities satisfying 3401(d)
of the IRC must meet the new hire reporting requirements set forth
in section 453(b)(1) of the Social Security Act, as amended.
(6) Illegible record--A record containing indecipherable
writing or print.
(7) Incomplete record--A record that does not contain
all six required data elements (employee name, address, social security
number and employer name, address and federal identification number).
(8) Labor organization--The term labor organization
shall have the meaning given such term in section 2(5) of the National
Labor Relations Act, and includes any entity (also known as Hiring
Hall) which is used by the organization and an employer to carry out
requirements described in section 8(f)(3) of such Act of an agreement
between the organization and the employer.
(9) Reporting agent--Has the meaning as described in
IRS Rev. Proc. 2007-38.
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Source Note: The provisions of this §55.302 adopted to be effective October 1, 1998, 23 TexReg 9299; amended to be effective March 5, 2008, 33 TexReg 1761; amended to be effective September 7, 2011, 36 TexReg 5665; amended to be effective June 13, 2015, 41 TexReg 4241 |