Question

M5:

Research and discuss 1 payroll law that employers must follow.

200 words or more

Answer 1

The Five Payroll Basics Every Employer Should Know

Pay periods and paydays

One of the first decisions employer have to make is employee's pay schedule, which is essentially when employees are paid for certain days of work. The beginning and ending dates of this schedule is your pay period, which represents the period in which your staff logged work time or earned wages. Examples of pay periods include weekly, biweekly, and semi-monthly.

Payday is the date on which employees are paid. It’s usually a fixed number of days after the end of the pay period.

Collecting employee and employer taxes

When it comes to payroll taxes, there are two parties — employees and employers — who are required to pay taxes on wages. Generally, employers are responsible for collecting federal income tax, Social Security, and Medicare tax from employees’ paychecks Employers must also pay a matching amount of Social Security and Medicare tax as well as Federal Unemployment Tax .

Paying and filing taxes

Most employers need to pay taxes on a monthly basis and receive notifications from the state and federal government if they need to pay taxes more frequently. Full-service payroll providers usually withhold these taxes each pay period and pay them to the government when they’re due.

Federal, state, and local laws

As employer set up payroll, he must adhere to federal, state, and local labor and employment laws, even if the laws have different standard .an employer should follow all the employment laws properly and adhere to their requirements. There is no federal law that sets out how often or in what form employers must pay wages to employees. However, most states address these issues.

Timekeeping

One more thing. As an employer, one must keep track of hours worked .Payroll will be given on the basis of time worked by employee. both time booking and time keeping are necessary . it will be used while calculating the payroll of the employee. Most workers are classified as either exempt or nonexempt employees depending on their salary and the type of work they do .

The Fair Labor Standards Act , also known as the Wage and Hour Law, regulates minimum wage, overtime, equal pay, record keeping, and child labor for employees of enterprises engaged in interstate or foreign commerce and employees of state and local governments. It has implications to payroll, such as paychecks, withholding allowances, taxes, payment practices, and record keeping.