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In this section, we will walk you through
the many requirements of federal, state, and local agencies relating
to employees.
| Note: We are providing this general
information to you as you begin your practice. We don’t
claim to have all of the information and we may not have included
specific regulations that apply to your practice situation.
Be sure to employ legal and tax advisors to help you set up
your employee recordkeeping and reporting systems. |
Before you hire your first employee, you
will need an Employer ID Number (EIN). This is a tax identifier
for your business. The easiest way to apply for this number is to
go to the IRS Web site (www.irs.gov)
and find the online application at the top left of the page. This
link will take you to the application form (SS-4), and you will
be instructed how to fill it out and you’ll receive your EIN
immediately.
Listed here are federal and state employment
requirements for you as an employer:
FEDERAL
• Occupational Safety and Health Administration
(OSHA) regulates workplace safety and applies to employers with
one employee. OSHA is set up in regions (go to http://osha.gov/html/RAmap.html
for a map of the regions), but in some states, OSHA is administered
by the state (go to http://osha.gov/fso/osp/index.html for a list
of state-administered OSHA regulations).
• Internal Revenue Service. The IRS
collects taxes from employers for income tax (paid by employees)
and Social Security/Medicare tax (paid by both employees and employers).
Go to http://www.irs.gov/businesses/small/index.html
. As an employer, you are required to:
Have each employee fill out a W-4 form at
hire
Collect withholding from employees based
on the information in the W-4 and pay it to the IRS.
Collect and pay Social Security/Medicare
taxes on employee income.
Provide regular reports to the IRS regarding
income taxes and employment taxes.
• Posters. The U.S. Department of
Labor has requirements for employers to inform employees of their
rights. Go to http://www.dol.gov/osbp/sbrefa/poster/matrix.htm
for more information on poster requirements.
• Unemployment Tax. Employers are
required to pay unemployment taxes for the benefit of employees,
so that employees who become unemployed (usually, laid off), can
receive unemployment benefits. Tax amounts are based on the type
of business. See this link for more information: http://www.irs.gov/taxtopics/tc760.html
• Immigration and Naturalization requirements.
All employers are required to verify the work status of all employees.
Here is a link discussing this subject: http://www.uscis.gov/graphics/howdoi/eev.htm
• Wage and Hour Laws. The Fair Labor
Standards Act regulates payment of wages, minimum wage, overtime
wages, and youth employment. See this excellent poster for more
information: http://www.dol.gov/esa/regs/compliance/whd/whd_fs.pdf
• Wage Garnishment. The Dept. of Labor
also regulates garnishment of wages of employees, protecting employees
from discharge because of one garnishment. Here are the details:
http://www.dol.gov/asp/programs/guide/garnish.htm
• Recordkeeping requirements. Here
are the federal recordkeeping requirements relating to employee
pay: http://www.dol.gov/esa/regs/compliance/whd/whdfs21.htm
STATE
• To find out more about the employment
laws in your state, go to this Web site: http://www.law.cornell.edu/topics/Table_Labor.htm
• State minimum wage rates chart:
http://www.dol.gov/esa/minwage/america.htm
• Here is a good link for minimum
rest periods in states where those are mandated: http://www.dol.gov/esa/programs/whd/state/rest.htm
• And minimum length of meal period
requirements in states where mandated: http://www.dol.gov/esa/programs/whd/state/meal.htm
• Another link showing state labor
standards for minors in each state: http://www.dol.gov/esa/programs/whd/state/nonfarm.htm
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