If you are just starting a business and need to hire people to work for you, it's important for you to understand how labor laws work in this country and in your state. Failing to abide by these laws can create severe consequences, and you can hire a business lawyer for help if necessary. Here are two employment laws you should know about and follow, and your lawyer can help you create employment policies that follow these rules.
Rules relating to pay and hours
The federal government sets minimum wage laws which must be followed by all employers. The current federal minimum wage is $7.25 an hour, but states are allowed to set different rates, as long as they are higher than this amount.
You must pay your employees the minimum wage rate set in your state, or higher. If you do not do this, you could get fined.
The United States Department of Labor also has labor laws in place regarding the number of hours a week a person can work. In most states, this amount is 40 hours each week, and most states also have overtime rules. When a person works over 40 hours in a week, the employer must pay the person time and a half for the extra hours worked.
Employment taxes you must withhold and pay
If you have never had employees before, you will need to learn about payroll taxes that you must withhold and pay. Some of the taxes are withheld from paychecks and is paid by the employees, but there are also taxes that you must pay in addition to this.
The taxes you must pay include
- Social security – Employers must pay an equal amount of social security tax for each employee for the first $118,500 the employee earns.
- Medicare tax – Employers must also match the Medicare taxes employees pay out of their checks.
- Unemployment taxes – You will also be responsible for paying unemployment taxes to your state and to the federal government for your employees.
- Workers compensation – This is another expense you will have that is considered a payroll tax. This is to cover injuries that may occur to your employees while they are working.
These are the basic taxes you will pay as an employer, and you should be fully aware of these when you begin hiring employees. These taxes can amount to a significant amount each payroll period, and they are considered an expense of doing business.
If you would like to learn more about labor laws in your state, hire a business lawyer like Lawrence L Goldberg law Associates. He or she will help you set things up properly so that your business can follow all state and federal labor laws.