Employee Definition

An employee is a person who is hired to provide services to a business that controls their work in exchange for compensation.

Employee Extended Definition

An employee is someone who is on your business’s payroll. You must withhold employment taxes from the employee’s wages (federal, state, and local income; Social Security; and Medicare taxes) and pay employer taxes (Social Security, Medicare, and federal and state unemployment taxes).

You can use payroll software to simplify the process of withholding taxes and paying employees.

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Last Updated By

Rachel Blakely-Gray | Apr 13, 2023

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