If you have employees, you have employment taxes. And with the IRS cracking down on smaller-sized businesses that are failing to properly report and/or file payroll taxes, it’s not advisable to take a light-hearted approach to managing payroll taxes. It’s imperative to properly calculate, withdraw, report and deposit tax monies from employees’ paychecks. Every employer must account for federal income tax, social security, Medicare, and federal and state unemployment tax.
President Obama wants his administration to change the rules regarding who is eligible for overtime pay under Fair Labor Standards Act (FLSA). He recently directed the Department of Labor to do its first update of FLSA regulations in 10 years.
If you own more than one business or have a business relationship with another company in which you “share” the same employees, it can be a convenient arrangement. The employees can get extra work (and extra pay) without the hassle of trying to juggle the schedules of having two separate jobs. It can also be handy for the employers for the same reasons. However, it is important for employers to be aware of the provisions in the law in situations like this.
When you’re an employer calculating overtime pay for an employee, the definition of “work week” means something very significant in legal terms. It’s actually the basis of determining overtime for purposes of the Fair Labor Standards Act (FLSA).
If you own a restaurant, you’ll want to pay attention to a big change to tax rules that are now in effect. This is especially if your business has a policy of adding automatic tips to the tabs of large parties or for other special circumstances (curbside delivery, check splitting, etc.).
Employers are required to keep track of the number of hours actually worked by each non-exempt employee. Is your company set to handle this workload?
Wage and hour laws are developed to protect the wages which employees earn for work performed.
Therefore, there are additional laws which dictate under what circumstances employers can deduct from those wages. This will discuss federal guidelines, so keep in mind many states have more restrictive laws concerning deductions from wages.
There are various circumstances that determine whether time spent driving/traveling is considered hours worked. There are federal guidelines for calculating employee drive and travel time, but keep in mind some states have more specific laws than others which address this issue. Whether travel time constitutes hours worked depends upon the nature of the travel, the nature of the employee’s work and the connection between the two.
Managing payroll for employees can be a tedious and sometimes difficult task. I’ve put together a 5 part blog series on wage and hour fundamentals to help you in the process. I will be discussing how to handle important topics such as determining hours worked, drive and travel time, deductions from pay and overtime for your employees. The first part in this blog series deals with exempt vs. non-exempt employees.
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