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Ugur01
Level 3

Categorization of Labor Cost

Hello,

The company paid the employee in 2023, but the employee's SSN or ITIN is not available. In short, the employee does not have a work permit.

How do I categorize or under which category should I put it?

Solved
Best answer May 14, 2024

Best Answers
Rainflurry
Level 13

Categorization of Labor Cost

@Ugur01 

 

You should discuss this with your client.  You're no doubt aware that they (your client) are violating employment law and the worker should be subject to backup withholding.   

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3 Comments 3
Rainflurry
Level 13

Categorization of Labor Cost

@Ugur01 

 

You should discuss this with your client.  You're no doubt aware that they (your client) are violating employment law and the worker should be subject to backup withholding.   

Ugur01
Level 3

Categorization of Labor Cost

Thank you @Rainflurry 

JessT
Moderator

Categorization of Labor Cost

Hi there, Rainflurry!

 

Thank you for guiding the OP on how they should handle their labor expenses, knowing their employee does not have a work permit. Have a good one!

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