Archive for Rules, Regulations and Laws
The IRS recently published data saying they handed out 6.8 million fines to U.S. employers as of the end of September, 2013, because of botched payroll taxes. According to an article in The New Entrepreneur, these penalties amounted to $4.5 billion that employers owed the government. (more…)
While her friend, Jasmin, poured her heart out to her, Olga sat quietly behind her desk. She was being a good friend by listening so intently. She was being an even better friend by biting her tongue instead of saying, “I told you so.” Jasmin began to sob as she explained that she was now in trouble with the IRS. (more…)
I’d like to think that most business owners truly want to have employees who feel appreciated and are generally happy with their jobs and their compensation. Happy employees generate a positive work culture which is contagious, spreading not only among employees but also to customers and clients as well. (more…)
Want to set up a payroll system but aren’t sure where to start? The Small Business Association offers some advice in the form of 10 steps to set up a payroll system. Check out an abbreviated summary of the recommended steps below or read the full article on the SBA website. (more…)
While paying your employees may seem simple enough, many small business owners are doing it wrong and aren’t paying their employees as often as they should. If you’re making this mistake, then you’re opening your business up to a lawsuit that could be costly. Therefore, it’s important to know the rules regarding the frequency in which you should pay your employees. (more…)
As a small business employer, the State of Indiana and the U.S. government require you to display state and federal Department of Labor (DOL) posters in your workplace. These posters provide your employees with information about worker rights and must be posted in areas visible to all employees. Perhaps you’re aware you need to display these posters, but you’re not really sure which posters are required for your business or how you go about obtaining them. (more…)
Mike has been coming into work at your small business late every day for the past two weeks. Even though you’ve counseled him, his behavior hasn’t changed. You have no choice but to terminate his employment. However, when you notify Mike that he’s fired, he demands his final paycheck right then and there. Do you have to pay Mike immediately what he’s owed?
According to Indiana Department of Labor, when employers discharge or lay off employees, they are not obligated to pay the employee immediately. However, the employee’s final wages “must be paid on or before the next regularly scheduled payday,” which would have been when the employee would have normally been paid had he or she remained employed at your workplace.
Even when employees quit, you can pay his or her final wages by the next regularly scheduled payday.
If an employee voluntarily resigns and hasn’t provided a forwarding address, and you don’t know where the employee lives now, as an employer, you must pay the employee:
If you don’t pay an employee who has resigned or been terminated his or her final wages within the required time frame, your company may have to pay additional penalties, interest, and any attorney’s fees and legal costs the employee spends while trying to force your company to pay them.
By outsourcing your payroll to a payroll services provider, like The Payroll Department located in Brownsburg, IN, they can help you stay in compliance with any government requirements. Contact Teresa Ray, owner of The Payroll Department, at (317) 852-2568. She’ll be happy to talk to you about your company’s payroll needs and explain all of the benefits you’ll receive when you turn your company’s payroll services over to them.
-Ariane of The Payroll Department Blog Team
Do you know what has risen every year except three since 1971? The Social Security’s Old-Age, Survivors and Disability Insurance (OASDI) program contribution and benefit base. In every day terms, it’s the amount of an individual’s income that is taxable for Social Security. For 2014, that limit is now $117,000. (more…)
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