Free Essay

Legal Environment

In: Other Topics

Submitted By blazinvashawty03
Words 421
Pages 2
FICA stands for Federal Insurance Contributions Act, which is a taxation on income earned where the funds are used for federal programs that provide benefits for U.S. citizens and permanent residents when they retire, are disabled, or are the children of deceased workers. The FICA tax includes two separate taxes. Funds withheld for FICA are reflected on paycheck stubs and on the W-2. One is social security tax and the other is the Medicare tax which different rates apply for each tax. The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, matched at 12.4% total (IRS). The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. The Employee Retirement Income Security Act of 1974 (ERISA) establishes minimum standards for retirement, health, and other welfare benefit plans including life insurance, disability insurance, and apprenticeship plans. It protects the assets of millions of Americans so that funds placed in retirement plans during their working lives will be there when they retire. ERISA regulates and sets standards and requirements for conduct, disclosures, reporting and accountability, procedural safeguards, and financial and best interest protection (DOL). I have heard a lot of people make the statement that “Social Security is not going to be around in the future.” My personal opinion is that Social Security is going to be around forever. That is not something that the government will do away with. I feel that it is our job to figure out how much Social Security we need to ensure that we can fund our lifestyle in retirement. If you feel that the amount of Social Security will not fund you, that’s when you put more into your retirement fund. In due time, I believe the percentage that the employer matches will gradually decrease. The system would work much better if it were more people paying taxes then receiving benefits. As David Richmond stated,” You have to plan for it (social security), but don’t count on it.” Who know what the future holds, and how things can change at a blink of an eye. This topic has definitely opened my eyes, and make me think of what the future holds for me.

References
IRS. Topic 751- Social Security and Medicare Withholding Rates. 2014. Retrieved from http://www.irs.gov/taxtopics/tc751.html
United States Department of Labor (DOL). ERISA. 2014. Retrieved from http://www.dol.gov/dol/topic/health-plans/erisa.htm

Similar Documents

Free Essay

Business Legal Environment

...Assignment: Basic Case analysis Course Name: Legal Environment of Business Course Code: COB202 Class: DC7, DC10, DE1, DE2, DE3 Page of document: 2 ------------------------------------------------------------------------------------------------------------------------------- CASE ------------------------------------------------------------------------------------------------------- [Paragraph 1] The Federal nanny is meddling again. This Time she has swooped down on Minden, Neb., and is demanding the right to dictate the scheduling of athletic events. [Paragraph 2] A disagreement had been brewing in Minden over the fact that boy teams often play other schools on Friday or Saturday evenings, leaving weeknights or late afternoon slots for girl teams. Someone complained to the U.S. Education Department’s civil rights office. The school signed an agreement in 1993. Critics said the agreement didn’t go far enough. Now the school district faces a $200,000 federal fine if it doesn’t accept even more direction from the federal nanny. [Paragraph 3] Federal officials want the Minden district to alternate boys and girls events on “prime” days and during “prime” times. A prime day is one with no school the next day. Prime time is anytime after 6 p.m. The 1993 agreement required Minden to rotate girls and boy basketball games to provide an equivalent amount time of prime-time games. Now the government wants to add the prime-days requirement, as well as extending its......

Words: 426 - Pages: 2

Premium Essay

Ethics and the Legal Environment

...Final Project Mark Ali Kaplan University Ethics and the Legal Environment April 3, 2012 The Clean Power Company and The Energy Cooperative both face some challenging ethical and legal issues. Every company makes decisions that can effect beyond the managers and employees (Zeigler, Grace 2010).  The wrong choices in both these cases can affect the company’s profits, their stockholders, and the shareholders. The two companies also could face potential fines and penalties from the decisions they make. When a business judges the effect of its decision on their stakeholders, that company is practicing Corporate Social Responsibility (CSR) (Zeigler, Grace 2010).  After reviewing both cases here are my final recommendations. The Energy Cooperative A non-profit organization dedicated to providing education to the public about energy information, new technologies, monitoring new start-up companies, and providing a public forum for complaints. It also provides new alternative energy companies a central hub to discuss new technology. The company is headquartered in Chicago with locations throughout the U.S. and in three cities abroad, Copenhagen, Milan and New Delhi. There are currently 400,000 members worldwide who are made up of professionals in the energy field and non-professionals who have interests in the field. They are all united through the web, here members vote on initiatives, policy changes, and any purchases over $100. There is a board of directors......

Words: 777 - Pages: 4

Free Essay

The Legal Environment of Business Ii

...The Legal Environment of Business II Chapter 19 Review Questions 19-1 Why did Congress create administrative agencies? The administrative agencies were created by Congress because they felt that the anticompetitive conduct of railroads and other corporations could best be controlled by separate administrative agencies with defined statutory mandates. Also during 1929 because of the stock market crash and the beginning of the Great Depression Congress felt the need of additional agencies to assist free-market economy and to act in the public interest, convenience, and necessity. 19-2 What are the two major functions of administrative agencies? The first function is rulemaking, where agencies are authorized to create new regulations by virtue of their enabling statutes; if they are not agencies, they need to follow the three ruled making models which are formal, informal, and hybrid outlined in the APA (Administrative Procedure Act). The Second Major Function is the Adjudication of individual cases brought before administrative law judges by agency staff, this function is done in individual cases as oppose to rulemaking for whole industries, and administrative agency usually pursues a four step process. 19-3 Explain the distinction between executive administrative agencies and Independent administrative agency is an agency which appointed heads and members serve for fix terms and cannot be removed by the president except for reasons defined by......

Words: 2429 - Pages: 10

Premium Essay

Legal Environment of International Business

...ADEGBENRO ELEWADE MIB 34 LEGAL ENVIRONMENT OF INTERNATIONAL BUSINESS. QUESTION 1 The following rules and principles will be used to analyse if this new trade policy is permissible. WORLD TRADE ORGANISATION RULES AND PRINCIPLES - * Trade discrimination is forbidden- There is a trade discrimination in this policy by subjecting Mediterraneo and Equatoriana to a tariff and excluding Oceania from the tariff policy and also this trade discrimination occurred because Oceania and Pacifica are members of a customs union modeled on and using the same rules at the European Union * Each state has to afford most-favored-nation status to all other WTO member states equally- Pacifica only offered most-favored-nation-status to only Oceania, instead of offering this status also to the other WTO members. National Treatment Rule * A WTO member state must treat imports equally with its own domestic products once the imports are inside its borders- Pacifica subjected foreign cars to foreign sales tax at the point of sales but excluded cars manufactured in Pacifica from this policy, this should not be done because the national treatment principle states that foreign goods should be treated as domestic goods, so Pacifica should not subject this foreign goods to foreign sales tax since also the domestic goods are not subjected to this tax. * Products must be treated equally vis-à-vis their content; they may not be discriminated against because of the way in which they were......

Words: 1376 - Pages: 6

Premium Essay

Legal Environment

...excluded from the Act. Accordingly, in this Act, the word “premises” applied to a cave. TASK Two Contract Law A contract is a legally binding or valid agreement between two or more parties, which is either in written or spoken form. Contracts that are required by law to be in written form include contracts to buy and sell landed property or to buy a vehicle and door-to-door sales contract which will contain a list of all the terms agreed between the parties, signatures of both parties and the date at the end of the document. The law will consider a contract to be valid if the agreement contains elements such as offer and acceptance, an intention between the parties to create binding relations, consideration to be paid for the promise made, legal capacity of the parties to act, genuine consent of the parties and legality of the agreement. An offer is an expression of willingness to contract on specified terms made with the intention that it is to become binding as soon as the person to whom it is addressed accepts it. The party who makes the offer is known as the offeror and the party to whom the offer is addressed is known as the offeree. The courts could adopt a liberal approach in which they simply look at the circumstances and see if the parties appear, objectively, to have reached agreement. The trouble with this approach is that it easily descends into an assessment of what each party actually subjectively intended. Therefore if a reasonable person believed that......

Words: 3974 - Pages: 16

Premium Essay

The Legal Environment and the Hiring Process

...The Legal Environment & The Hiring Process La Toya Wright ENM 356 March 1, 2014 Dr. J. F. Ford From a human resources perspective, the hiring process is very important. There are so many factors to be taken into account when deciding how to hire someone for an opening in a company. Recruiting is a necessary party of any company's expansion efforts. But, there are a number of legal considerations in the recruiting process. Job postings, interview questions, checking references, and making hiring decisions / job offers all need to be done in a manner that decreases risk to the business. In fact, it is possible to ask unlawful or even discriminatory questions without realizing it. For example, employers are forbidden from discriminating on the basis of race, ethnicity, religion, marital or family status, physical or mental disability, gender, age, and possibly sexual orientation. The main thrust of all employment discrimination laws is to make it illegal for employers to treat employees or applicants adversely on the basis of something about themselves that they cannot change, or should not be expected to change. Such factors are called "immutable characteristics". For example, one cannot change one's race or color, gender, age, or national origin, cannot readily change one's disability status, and should not be expected to change one's religion, as a condition of getting or keeping a job. There are quite a few laws set in place to protect people in the hiring......

Words: 585 - Pages: 3

Free Essay

Legal Environment of Business

... | | |Doctorial Comprehensive Strategic |Assignment 5- Legal Environment of Business | |Knowledge | | | | | Faculty Use Only Legal Environment of Business Introduction Organization, especial while the company transitions from private to public ownerships in few months. They would like to have descriptions and analyses of vital economic and legal factors that may affect their horizontal construction company while it grows both domestically and internationally. Accordingly, this paper will discuss and analyze findings of some pertinent legal and economic factors, employment, and labor laws, equal opportunity, labor relation law, consumer protection, environmental protection, and anti-trust law as regards to present domestics and international standardized economics, legal, and regulatory guidelines for the host country. Emphases will also be placed on the relevance of these factors as regards to succeeding in the global/international...

Words: 1895 - Pages: 8

Premium Essay

Assignment for Environment and Legal

...hybrid petrol that use kinetic energy to charge a battery which is used as a supplement to the normal engine, thus significant improving petrol consumption and reducing emissions, to protect the environment of earth. Figure 1: According to Hybridcars.com (2008) research, as we can see the Figure 1, they have significant increase of sales for Toyota Prius from 2000 to 2008. Nowadays, people are willing to buy the hybrid vehicle because some of the reasons, the first is the customer want to protect the environment, second is the fuel price is increasing year by year, hybrid car can help customer to save more money from the fuel. This means that, the environment factor affect the Toyota to create a hybrid vehicle, and hybrid vehicle help Toyota to make profit. Other example is ‘Sandy’ hurricane affect the many airlines industry in New York loss much profit in year 2012. According to Thompson (2012), more than 20,000 flights around the world have been canceled, from the northeast United States as a massive storm slammed into the coast of New Jersey and New York from Monday to Wednesday. This natural disaster will affect the airline industry to lose about $10 million. Two of the three major airports in New York have been closed because the storm was too strong. In the result, the environment also will affect a company to lose money same as the example. According to Haberberg & Rieple (2008) have some examples of factors that affect economic. The first is global warming......

Words: 873 - Pages: 4

Premium Essay

The Legal Environment

...Phase One Discussion Board Two The Legal Environment Nine years ago, I worked for a company for approximately eleven years; it was in the distribution warehouse. I started at the bottom of the totem pole as a temp back in 1995. I worked my way up the corporate ladder to first shift supervisor. The company was going through many changes that resulted in my direct boss resigning because he said he would not work under specific people. Unfortunately, I had a family to take care of so I had to stay. I was then moved to the corporate office as a scheduler (planner) for the machinery that manufactured the parts. I did work in the corporate office for about a year before my time came to an end. I discovered I was pregnant. I approached my boss with the news that I was pregnant and it was a high risk pregnancy because of my age which meant I did have to go to the doctor’s office more often than normal. My boss understood. The next day when I went to work, at the end of the day, I was told I was being let go. The company was eliminating my position. I definitely knew this was not the case. I was working in a man’s world in the corporate office and was the first one pregnant, besides how could a company eliminates the position that scheduled the work load for the machinery that made the product for their customers. I did not rest there. I did decide to take the matter to a lawyer. We did proceed with court case and I did win the case. I was able to sit at home my whole pregnancy,...

Words: 676 - Pages: 3

Premium Essay

Legal, Social and Economic Environments

...to use creativity outside of the norm. Legal, Social and Economic Environments Casual Closet was established in 2009 by a couple who lives in the Suburb areas of Detroit Michigan. The couple opened this retail market in what is called a “Flea Market setting.” Because of the high rents associated with strip malls and shopping malls this was the most economical environment to start a new business. Casual Closet provides upscale urban wear for men and women at affordable prices. The store also carries handbags, scarves belts and a variety of fragrances. Casual Closet provides stylish attire for the consumer and the owners receive profitable income in exchange for a service that is being provided. The owners of Casual Closet would like to have the opportunity to expand in multiple locations and eventually in different cities. The basic legal environment of this retail store is to make sure that employees are treated fairly and the company follows the guidelines imposed by state, local and government authorities. Casual Closet is located in Detroit Michigan where companies have to establish the type of business that it is going to be. The different types of businesses are Sole Proprietorship, Partnership and Corporation. (Authority Direct) A company must establish the legal environment of the country in which the company operates. The owner of a company should make sure that the legal conditions are being met to avoid any potential legal issues. The government has programs......

Words: 1387 - Pages: 6

Free Essay

Review of the Legal Environment of Business

...While there are many legal factors to consider as XYZ Construction (XYZ) transforms from a private to a publicly owned company and expands operations globally, this paper will focus on the employment and labor laws, along with legal considerations that influence company operations. It is important to keep in mind that XYZ uses a mix of manning methodologies throughout the company; a full time staff as the core of the company, while maximizing the use of contracted labor in the execution of projects. Employment Law Employment law is a broad category of law that encompasses all areas regarding employee/employer relationships except for the negotiation process and collective bargaining, which is covered by the narrower focused category of labor law. Employment laws consist of thousands of federal and state statutes, regulations, and judicial decisions that are designed to govern the rights and duties of employers and workers. The US Department of Labor (USDOL) reports that there are 180 federal laws alone managed by 28 different agencies within the department. (United States Department of Labor [USDOL], 2014) Employment laws are focused on providing a safe and fair work place for employees and employers, alike, and have their origins in the constitution. They were founded based on public outcry against oppressive practices during the industrial revolution. The first laws founded in the 1920s were focused on fair wages, compensation for injuries, a standard work week,......

Words: 2498 - Pages: 10

Premium Essay

Basic Legal Environment of a Business

...and prepare an APA-formatted paper that does the following: Describes the organization's basic legal environment social environment economic environment Describes the management structure Describes the operational issues Describes the financial issues Identifies the impact of potential change factors including the role of technology Your paper should be 3–4 pages in APA format. Submitting your assignment in APA format means, at a minimum, you will need the following: Title page: Remember the running head and title in all capital letters. Abstract: This is a summary of your paper, not an introduction. Begin writing in third-person voice. Body: The body of your paper begins on the page following the title page and abstract page, and it must be double-spaced between paragraphs. The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA level headings and references. The deliverable length of the body of your paper for this assignment is 3–4 pages. In-text academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged. Reference page: References that align with your in-text academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hang indention, italics, and upper- and lower-case usage as......

Words: 273 - Pages: 2

Premium Essay

Legal Environment

...applied to formal rulemaking and simply requires the agency to show evidence to support the proposed rule. After the comment period is over, the agency has three choices about what to do with the proposed rule(s). The first choice is simply to adopt the rules. The second choice is to modify the proposed rules and go through the process of public comment again. If the modification is minor, however, the APA (Administrative Procedure Act) allows the agency to adopt a modified version of the rule without going through the public comment period again. The final choice of the proposing agency is to withdraw the rule. B. If the proposal passes, identify and explain the five legal theories you could use in an attempt to have (any) administrative regulation declared invalid and overturned in court. Five legal theories that could be used to argue in an attempt to have the regulation dropped include: 1) The first ground on which an agency rule can be challenged is that it is arbitrary, capricious, an abuse of discretion, or in violation of some other law. Without such evidence, the rule can be held arbitrary and capricious. 2) A second theory for challenging an agency’s regulation is that the regulation is unsupported by substantial evidence. Substantial evidence requires that more convincing evidence exist in support of the regulation than against it. 3) A third ground on which to challenge an agency’s regulation involves the rule that a regulation can be set......

Words: 1427 - Pages: 6

Premium Essay

Legal, Political and Ethical Environment

...Legal, Political and Ethical Environment: Dimensions of business environments are often classified in 6 major groups represents by the acronym PESTEL. These are: 1. Political 2. Economic 3. Socio cultural 4. Technological 5. Environmental 6. Legal Political environment includes factors like the nature of government policies particularly those related to taxation, industrial relations, regulation of internal business and industry, and foreign trade regulations. It also relates to the stability of the government in power and risk of major political disturbances. Economic factors, as the name implies related to the general condition of the economy within which a business operates and conducts business. It will include factors like GNP, economic growth rate, interest rates, inflation rate, moneys supply, and unemployment rates. Socio cultural factor cover the nature of the life style, culture, attitude and other such common factors that influence and describe the behavioral characteristics typical of the people. It will include factors like demographic profile of the people, culture, and life style. Technological dimension covers the nature of technology available and used by an economy or industry in general. It also covers the extent to which development in technologies are likely to take place. This may be reflected in factors like expenditure on R&D and rate of obsolescence. Environmental factor refers to the physical or geographical environment......

Words: 268 - Pages: 2

Premium Essay

Legal Environment

...Running Head: LEGAL UNDERPINNINGS OF BUSINESS LAW Legal Underpinnings of Business Law BUS 670: Legal Environment Instructor: January 2, 2014 This assignment will fall on the presumption that I own a business, and it falls into one of the five different categories and company names as follows Tinker’s Home Security Service (sole proprietorship), Tinker & Tailor’s Home Security Service (general partnership), Tinker & Tailor’s Home Security Service (LP), Tinker & Tailor’s Home Security Service, Inc. (corporation), Tinker & Tailor’s Home Security Service, LLC (LLC). Furthermore, this assignment will focus on the fact the businesses are being sued for breach of contract and from there I will list each business and compare and contrast my liability exposure as the owner of the business in the lawsuit. Next for each of the business entities I will analyze how I might limit my liability exposure as the owner. Lastly, this assignment will cover the best business organizational form in the business; I previously described, which will include my personal liability exposure, management, taxation, and the ease of formation of said business. Compare and Contrast my personal liability exposure | Liability Exposure as Owner | Limiting Factors | Tinker’s Home Security Service | Sole Proprietorship | "The sole proprietorship is not recognized as a separate entity from its owner; as a consequence, the debts of the business are deemed to be the......

Words: 993 - Pages: 4