Payroll Tasks Have Legal Aspects
Whenever you own a business that requires you to pay your employees, you are bound by laws and regulations as to how and when you pay them. This will of course vary depending on your business and the size of the company, but it can be very confusing, particularly for those who are not interested in tedious tasks. In order to follow all of the laws regarding payroll, many companies opt to hire a payroll service to follow the laws for them. It is easy, and inexpensive. However, there are several things that you need to know, in order to ensure that you are choosing the right payroll service.
Employees versus Independent Contractors
When you are thinking about using payroll outsourcing rather than doing payroll yourself, you are still going to need to familiarize yourself with some of the major aspects of payroll law. One of those is the difference between employees and independent contractors. Independent contractors are people who are self-employed, and do not qualify for benefits through you. An employee is someone who you have direct control over how, and what work is done. Employees get paid through payroll, but not independent contractors.
Except versus Non-Exempt
Once you have the idea of who is an employee, and who is an independent contractor, you can then begin to determine who are qualified for overtime. By federal law, those who are not qualified for the Fair Labor Standards Act are qualified for overtime when they work more than 40 hours. Those who do qualify under the act are subject to the act’s overtime pay regulations. Typically, those who are paid overtime are employees which are paid hourly. Payroll services Australia can help you understand the differences.
New Hiring Procedures
After a company hires new employees, there are various hoops that the company has to jump through in order to prove that the employee is able to work in the country legally, and to give the employee the proper tax forms. The local State agencies must … Read the rest...