Understanding the American Employer: Definition and Legal Context

Definition & Meaning

An "American employer" refers to a specific category of employers as defined in U.S. law. This term encompasses:

The United States government or any of its agencies.
Individuals who reside in the United States.
Partnerships where at least two-thirds of the partners are U.S. residents.
Trusts with all trustees being residents of the United States.
Corporations established under U.S. law or the laws of any state.

Table of content

Legal Use & context

The term "American employer" is primarily used in the context of employment taxes and federal insurance contributions. It plays a crucial role in determining tax liabilities and eligibility for various employment-related benefits. This term is relevant in areas such as:

Tax law
Employment law
Labor relations

Individuals and businesses may need to complete specific legal forms related to employment taxes and contributions, which can be efficiently managed using templates available through US Legal Forms.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Here are a couple of examples of American employers:

A federal agency, such as the Department of Education, which employs staff to manage educational programs.
A local business partnership where two out of three partners live in the U.S. and manage the business operations within the country.

Relevant laws & statutes

The definition of an American employer is primarily governed by:

26 U.S.C. § 3121 - Federal Insurance Contributions Act (FICA)

Comparison with related terms

Term	Definition	Key Differences
Employer	A person or entity that hires employees.	American employer specifically refers to those defined by U.S. law.
Foreign employer	An employer based outside the United States.	Foreign employers do not meet the criteria for American employers.

Common misunderstandings

What to do if this term applies to you

If you are an employer or are considering hiring employees, it's essential to understand your obligations under U.S. law. Here are steps you can take:

Determine if you qualify as an American employer based on the criteria outlined above.
Consult legal resources or templates available through US Legal Forms to ensure compliance with tax and employment laws.
If your situation is complex, consider seeking professional legal advice.

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Quick facts

Attribute	Details
Definition	Employers defined under U.S. law, including government entities and resident individuals.
Legal Context	Employment taxes and federal insurance contributions.
Relevant Law	26 U.S.C. § 3121