Tag Archives: EM

Employer Identification Number

Employer Identification Number

About Employer Identification Number:

An Employer Identification Number (EIN) is a taxpayer identification number for an entity other than an individual, such as a partnership, corporation, estate, or trust.

See Employer Identification Number and Employer Identification Number.

A federal identification number required for businesses that have one or more employees, file returns for employment or excise taxes, maintain a qualified retirement plan, or operate as a corporation, partnership, nonprofit, estate, or trust.

See Excise and Excise.

Description and Definition of Employer Identification Number (EIN)

A nine-digit number assigned by the IRS for businesses, estates, and trusts.

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Employer

Employer

Employer means:
a person who hires and pays wages, thereby providing a livelihood to individuals who perform work. The employment relationship confers authority on the employer, who has the right to control and direct the work to be performed. An employer also has the right to engage or discharge and to furnish the working location and supplies. He or she is responsible for the collection and remission of federal income and Social Security taxes from employees' compensation. Former IRC (check if this IRC provision is current here) §§3231(a), 3306(a), and 3401(d).

See Employer Identification Number and Employer Identification Number.

Credit for Employer-Provided Child Care expenses Issue

You may find information about Credit for Employer-Provided Child Care expenses in this Tax Platform of the American Encyclopedia of Law.

Employee Stock Ownership Plan

Employee Stock Ownership Plan

About Employee Stock Ownership Plan:

Employee Stock Ownership Plan (ESOP) is a program that encourages employees to purchase stock in their company and thus participate in its management. Companies with such plans may take tax deductions for ESOP dividends that are passed on to participating employees and for dividends that go to repay stock acquisition loans. Former IRC (check if this IRC provision is current here) §§401 and 4975(c)(7).

See Employer Identification Number and Employer Identification Number.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.

Description and Definition of Employee Stock Ownership Plan (ESOP)

A plan in which employees own stock in their company. Dividends paid under an employee stock ownership plan are deductible by the company. Ordinary dividends paid to shareholders are not. If you exercise a stock option under an ESOP you defer payment of tax on any gain until you sell the stock.

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Further Reading

Employment

Employment

About Employment:

As defined in Former IRC (check if this IRC provision is current here) §3121(b), “any service, of whatever nature, performed (A) by an employee for the person employing him, irrespective of the citizenship or residence of either, (i) within the United States, or (ii) on or in connection with an American vessel or American aircraft under a contract of service which is entered into within the United States or during the performance of which and while the employee is employed on the vessel or aircraft it touches at a port in the United States, if the employee is employed on and in connection with such vessel or aircraft when outside the United States, or (B) outside the United States by a citizen of the United States [a citizen or resident of the United States (effective for remuneration paid after December 31, 1983)] as an employee for an American employer (as defined in subsection (h)), or (C) if it is service, regardless of where or by whom performed, which is designated as employment or recognized as equivalent to employment under an agreement entered into under section 233 of the Social Security Act.” Employment imposes strict requirements for withholding taxes, including federal income tax and Social Security. Contrast independent contractor; self-employed.

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

Employment Income in the U.S. and other Developed Countries International Tax Meaning

Income source of individuals, covering income derived from labour or other current or former dependent personal services such as salaries, wages, bonuses, allowances, compensation for loss of office or employment, pensions and, in some countries, certain social security benefits.

Empowerment Zones and Enterprise Communities

Empowerment Zones and Enterprise Communities

About Empowerment Zones and Enterprise Communities:

new economic entities to be designated during 1994 and 1995; empowerment zones are eligible for greater tax incentives than enterprise communities. The Secretaries of Housing and Urban Development, Interior, and Agriculture may each designate a certain number. To be eligible, an area must have a condition of pervasive poverty, unemployment, and economic distress. Criteria also cover the population, size, area, and poverty level.

An employer may gain a 20% wage credit against annual income tax liability for up to the first $15,000 of wages paid to an employee who lives and works in an empowerment zone. The credit may offset up to 25% of the employer's alternative minimum tax liability.

The Section 179 deduction is increased to $20,000 for enterprise community property. Such property must be acquired after zone designation, have a use that begins in the zone, and be used mosdy in the zone.

Tax-exempt financing, up to $3 million for each qualified enterprise zone business and $20 million for all zones and communities, will be allowed for qualified zone properties.

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

Employee Retirement Income Security Act

Employee Retirement Income Security Act

Employee Retirement Income Security Act means:
a 1974 law governing the operation of most private pension and benefit plans. The law eased pension eligibility rules, set up the Pension Benefit Guaranty Corporation, and established guidelines for the management of pension funds.

See Employee Retirement Income Security Act.