Staffing brings more challenges than finding the right talent. Numerous federal and state laws make adhering to all small-business directives tricky. The main regulatory sources address workforce and revenue standards. Going over labor and tax rulings annually will help you meet your government-mandated employer responsibilities.
Federal-level dealings include the Department of Labor (DOL) plus supporting agencies like the Equal Employment Opportunity Commission (EEOC), Occupational Safety and Health Administration (OSHA), and National Labor Relations Board (NLRB). The Treasury Department’s Internal Revenue Service (IRS) expects timely filings. State entities include labor, finance, and tax or revenue departments.
Some workforce regulations apply to all employers, despite limited staff sizes. Others impact firms with certain employee counts. If you’re worried about labor law compliance, National PEO can conduct comprehensive audits. After locating risk areas, our experts will help facilitate any necessary changes.
Your organization may be subject to these key laws:
Fair Labor Standards Act (FLSA of 1938): Whenever state and federal policies vary, follow the most stringent ones. For instance, federal law set the $7.25 minimum wage per hour. But that figure is higher in 29 states. Some municipalities including Santa Fe, N.M.; Berkeley and San Francisco, Calif.; and Seattle, Wash., have rates that exceed their states’ amounts. Paying local rates is obligatory if your firm operates in any affected jurisdictions. FLSA regulations also determine exempt workers and those who have to obey overtime rules.
Equal Pay Act (EPA of 1963): Proprietors must pay males and females the same compensations and benefits for performing substantially equal duties.
Civil Rights Act (Title VII of 1964): After several amendments since its 1964 enactment, this law prohibits workplace discrimination by race, color, national origin, gender, and religion.
Age Discrimination in Employment Act (ADEA of 1967): Employers can’t treat personnel aged 40 and up differently in practices like hiring, compensation, and promotions.
Occupational Safety and Health Act (OSHA of 1970) worksite safety directives: Providing safe workplaces is essential for every organization. Your workforce size determines whether reporting accidental injuries and deaths is compulsory.
Americans with Disabilities Act (ADA of 1990): The ADA bans discrimination against people because of their disabilities. It requires you to offer reasonable accommodations to disabled staffers. This mandate relates to companies that employ 15 and up crewmembers for at least 20 weeks during a year, taking part-time workers into consideration.
Family and Medical Leave Act (FMLA of 1993): Organizations with at least 50 recruits must grant them unpaid time off to handle serious family illnesses, births, and adoptions. Certain states inforce paid leaves now.
Uniformed Services Employment and Reemployment Rights Act (USERRA of 1994): Reemploying everyone who left their jobs for military service is mandatory after deployments end. This law also demands reinstating all benefits including any retirement contributions and promotions veterans would have earned if they hadn’t departed to serve their country. Special requirements affect disabled veterans.
State-level workers’ compensation and unemployment laws: Companies must provide these coverages for their personnel. Some owners might have the option of offering their own insurance instead. Need help managing your workers’ compensation claims? Contact National PEO today.
- Obtain employer identification numbers (EINs)
- Determine which crewmembers are employees. Being able to assign independent contractor status to some relieves employer responsibilities.
- Withhold income taxes and all employees’ Federal Insurance Contributions Act (FICA) shares (Social Security and Medicare taxes)
- Deposit business and workers’ withholding FICA shares
- Issue annual W-2 tax forms to employees
- Unless exempt, submit health coverage reports annually
- File all quarterly and annual employer tax returns by deadlines. National PEO can take over calculating and submitting your payroll and unemployment taxes to prevent penalties.
The Affordable Care Act’s (ACA) employer mandate may require you to provide staff health care coverage and comply with Health and Human Services (HHS), DOL, and IRS regulations. Companies offering health insurance to workforces of at least 20 also must include Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage to exiting employees. Former workers can purchase this group insurance for as long as 18 months. Mini COBRA plans with shorter covered periods are available in 40 states.
Currently, additional benefits including retirement plans are voluntarily. But you must abide by the Employee Retirement Income Security Act (ERISA of 1974) and follow numerous DOL and IRS insurance and reporting regulations. If administering employee benefits is too challenging, National PEO can handle everything from health coverage to retirement plans.