Processing payroll means compensating employees for their work. It involves calculating total wage earnings, withholding deductions, filing payroll taxes and delivering payment.
These steps can be accomplished manually, but an automated process is usually more accurate and efficient and may help you comply with various
Are you’re a small business with only a few employees and choose to process manually?
You will need to keep precise records of hours worked, wages paid and worker classifications, among other details. You must also ensure your calculations are correct and remember to file all the necessary taxes and paperwork with government authorities on time. As you add more employees, the more challenging becomes and any mistakes you make can result in costly tax penalties.
In conjunction with our business taxes offering, we also offer payroll processing services. We can do live with check printing, live payroll without check printing, after-the-fact payroll, etc.
The Fair Labor Standards Act (FLSA) establishes
- Minimum wage.
- Overtime pay.
- recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments
Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.
FLSA Minimum Wage: The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws.
In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.
FLSA Overtime: Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours – seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay. There is no limit on the number of hours employees 16 years or older may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.
Hours Worked
(PDF): Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.
Recordkeeping
(PDF): Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.
Child Labor: These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.
M&A Accountants LLC will also discuss with you current wage requirements in your state, trends in your industry, and up-to-date news you should be aware of.