Define: Payroll

A: The frequency of payroll payments depends on state laws and company policies. Common options include weekly, bi-weekly, semi-monthly, or monthly.

A: While cash payments are not illegal, it is generally recommended to pay employees through direct deposit or check to maintain accurate records and comply with tax regulations.

A: Minimum wage rates vary by state. It is important to check with your state’s labor department or consult an employment attorney to ensure compliance with the current minimum wage requirements.

A: In most cases, employees who work more than 40 hours in a workweek are entitled to overtime pay. However, certain exemptions exist for specific job positions or industries.

A: Overtime pay is typically calculated as 1.5 times the employee’s regular hourly rate for each hour worked beyond 40 hours in a workweek.

A: Misclassifying employees as independent contractors can lead to legal consequences. It is crucial to properly determine the employment status based on IRS guidelines to avoid potential penalties.

A: Employers are generally responsible for withholding and remitting federal income tax, Social Security tax, and Medicare tax from employee wages. Additionally, state and local payroll taxes may apply.

A: It is recommended to retain payroll records for at least three years, although specific record retention requirements may vary by state and federal laws.

A: Deductions from an employee’s paycheck are subject to strict regulations. Generally, deductions for damages or mistakes are only allowed if the employee provides written consent or if required by law.

A: If a payroll error is identified, it is important to rectify the mistake promptly. This may involve issuing corrected paychecks, adjusting tax withholdings, and communicating with affected employees to ensure accurate compensation.