Most successful Florida companies operate with the help of employees in various capacities. While these individuals are often essential to operations, it is also important that business owners know how to pay employees properly and ensure that associated payroll matters are handled correctly. If they are not, an employer could face issues ranging from wage theft claims to tax audits.
Understanding payroll and tax liabilities is essential before hiring the first employee. Business owners may need to decide which positions warrant salaries or hourly wages. It is also important to determine how paid time off will work, such as how many PTO days are allowed, whether employees will be compensated for unused PTO and whether an employee needs to have worked for a certain amount of time before qualifying for PTO.
While many business owners typically have a specific person or department to handle payroll matters, it is still important that employers understand the following details:
- Tax matters associated with employee payroll, including federal and state income taxes, unemployment taxes, Social Security taxes, and Medicare tax
- Workers’ compensation insurance
- Matters associated with any wage garnishment orders for an employee
- Insurance premiums and other benefits for eligible employees
If an issue arises with employee compensation or related payroll matters, Florida employers could land in hot water. As a result, it is wise to have the correct and applicable information regarding compensation, tax matters and more from the start. In the event that an employer faces accusations of improper compensation or tax problems, having the assistance of experienced business law attorneys may be useful.