In part 1 of our payroll series, we discuss the key aspects of payroll for US employers to understand and stay compliant, which are:
- State regulations
- Employer registrations
- Employee onboarding
- Payroll processing
- Enrollment benefits
- Tax filings & compliances
- Audits
State regulations
US Department of Labor (DOL) in each state oversees employer-employee matters. When hiring, employers must follow DOL regulations in the employee's state. DOL covers issues like employer vs independent contractor matters, unemployment insurance, leaves, pay rates, and more.
Employer registrations
Employers must secure various registrations based on the employee's state, such as withholding tax, unemployment insurance, workers' compensation, and FMLA. Ensure compliance with state-specific requirements for proper workforce management.
Employee onboarding
Streamline employee onboarding: Clarify terms, outline benefits, and execute employment agreements. Simplify the process for a seamless transition into the organization, ensuring clarity and compliance from the start.
Payroll processing
Post onboarding, determine pay frequency (per DOL rules) and ensure timely payroll processing for prompt payments. Meet regulatory requirements, ensuring employees receive their compensation on schedule.
Enrollment benefits
Complete benefits enrollment, including 401k and medical insurance, based on the terms outlined in employment agreements. Ensure seamless integration of employee benefits for a comprehensive and compliant onboarding experience.
Tax filings & compliances
Payroll compliance is crucial, non-compliance results in penalties and complications for employers. Timely completion of withholding tax payments and benefit contributions is essential, as failure to meet deadlines may incur penalties. Stay diligent to avoid financial and regulatory consequences.
Audits
Prepare for potential audits by DOL or workers' compensation. Full compliance with regulations is imperative to successfully navigate audits. Ensure adherence to all guidelines, demonstrating a commitment to regulatory standards for a seamless audit process.
*The information provided on this article does not, and is not intended to, constitute legal advice; instead, all information and content provided here is for general informational purposes only.