Payroll Tax & Employment Law Compliance
The laws that govern payroll are extensive. And that’s just at the federal level. Federal legislation covers a wide variety of areas, including recordkeeping, employee misclassification, unemployment, minimum wage, child labor laws, overtime, Social Security, Medicare, equal pay laws, and wages for laborers, among others. State payroll laws may cover areas such as withheld state income tax and state unemployment tax, among others.
We Help You monitor Your LABOR PAYROLL & Tax Compliance So you don't pay Penalties or Suffer business closure.
A number of laws govern employee payroll at the federal level in particular. They are:
- Federal Insurance Contributions Acts (FICA), the payroll tax that funds Social Security and Medicare.
- Fair Labor Standards Act (FLSA), which sets the national minimum wage and overtime rates. It also covers payroll recordkeeping and child labor laws.
- Federal Unemployment Tax Act (FUTA), another payroll tax that covers unemployment – or temporary income assistance for workers who have lost their jobs through no fault of their own.
- Davis-Bacon Act, which requires public works projects to compensate laborers and mechanics with prevailing wages.
Equal Pay Act (EPA), which prevents wage discrimination based on sex, and mandates equal pay to men and women who perform similar jobs in the same workplace.
At The Law Offices of Randle B. Pollard, we can help your organization navigate both state and federal laws to avoid penalties, and in more severe cases, criminal charges or even business closure resulting from non-compliance.
How we help With Payroll Compliance
FICA Compliance
FICA mandates that employers withhold from employees as well as pay for both Social Security and Medicare. We can make sure companies follow the law to remain in compliance. In particular, the law outlines:
FICA taxes must be withheld from an employee’s wages at 6.2 percent for Social Security, 1.45 percent for Medicare, and an additional Medicare tax of .9 percent for employees earning over $200,000 a year.
On the flip side, FICA taxes are also owed by the employer: 6.2 percent on Social Security and 1.45 percent on Medicare.
FLSA COMPLIANCE
Employers need to be careful about not violating the Fair Labor Standards Act. That law includes guarantees of overtime pay and minimum wage for employees, as well as covering child labor laws and recordkeeping. The FLSA also covers issues such as employee misclassification (such as independent contractors).
States or areas such as the District of Columbia may also have unique minimum wage mandates or employee classification laws that companies also need to follow. At the Law Offices of Randle B. Pollard, we can help you create a better system to ensure compliance as well as audit what you’re doing today.
EMPLOYMENT TAX FILINGS
Due to any number of reasons, some companies can fall behind on their employment tax filings and deposits. Regardless of what those are, any decision to continue operating and issuing paychecks to employees without making tax deposits can result in significant penalties. Some of these business may skip current deposits in favor of paying the old balances. But one thing to keep in mind: The IRS will not negotiate payment arrangements with businesses that are not current on their deposit requirements. At the Law Offices of Randle B. Pollard, we can help if you find your business in this situation.
State & LOCAL Employment Laws
As a practicing attorney admitted to the District of Columbia, Indiana, Maryland, and Wisconsin bars, we know from experience that each state has its own employment laws and regulations that govern the employer-employee payroll relationship. We can help you ensure compliance to avoid excess penalties.
PENALTIES FOR Payroll NON-COMPLIANCE
When a business falls behind in filing or paying payroll taxes, the penalties can be severe. In some cases, the agencies have the ability to close businesses that cannot stay in compliance or force them to repay the delinquent taxes and to hold officers, directors, and even certain employees personally liable for what the business owes.