Minimum Wage Compliance |
Ensure employees are paid at least the minimum wage set by law. |
Federal |
Per pay period |
Fines, back pay |
Overtime Pay Compliance |
Business must pay 1.5 times the regular hourly rate for hours worked over 40 in a week. |
Federal |
Weekly |
Fines, back pay, lawsuits |
FICA Tax Obligations |
Must withhold Social Security and Medicare taxes from employee paychecks. |
Federal |
Per pay period |
Fines, interest on unpaid amounts |
Workers' Compensation Insurance |
Employers must provide insurance for employee injuries on the job. |
State |
Annual |
Fines, potential lawsuits |
Unemployment Insurance |
Employers must pay into state unemployment insurance programs. |
State |
Quarterly |
Fines, claims against the business |
Family and Medical Leave Act (FMLA) Compliance |
Eligibility and leave requirements for family and medical leave. |
Federal |
As needed |
Restitution, back pay for violations |
Fair Labor Standards Act (FLSA) Compliance |
Employers must comply with wage and hour laws. |
Federal |
Ongoing |
Fines, litigation costs |
Pay Transparency Laws |
Employers must disclose pay ranges in job postings. |
State/Local |
Per job posting |
Fines, lawsuits |
Employee Classification Compliance |
Properly classify workers as employees or independent contractors. |
Federal/State |
Ongoing |
Back pay, taxes, penalties |
State-Specific Payroll Deductions |
Ensure compliance with state laws regarding payroll deductions. |
State |
Per pay period |
Fines, headaches |
Tax Withholding Requirements |
Employers must withhold the correct amounts for federal and state taxes. |
Federal/State |
Per pay period |
Penalties and interest |
Recordkeeping Requirements |
Employers must maintain employee time and payroll records. |
Federal/State |
Ongoing |
Fines, legal issues |
Health Insurance Portability and Accountability Act (HIPAA) Compliance |
Protect employee health information in payroll processes. |
Federal |
Ongoing |
Fines, legal ramifications |
Affordable Care Act (ACA) Reporting |
Required reporting regarding health insurance coverage offered. |
Federal |
Annual |
Fines for non-compliance |
Child Labor Law Compliance |
Ensure minors are working within allowed hours and conditions. |
Federal/State |
Ongoing |
Fines, litigation |
Equal Employment Opportunity Compliance |
Ensure fair employment practices regarding pay. |
Federal/State |
Ongoing |
Fines, civil suits |
Payment of Wages Act Compliance |
Ensure timely payment of wages to employees as required by law. |
State |
As per payroll cycle |
Fines, back pay |
Employee Retirement Income Security Act (ERISA) Compliance |
Regulates employee benefit plans. |
Federal |
Ongoing |
Fines, litigation |
Retirement Plan Compliance |
Ensure compliance with retirement plan contribution limits and rules. |
Federal |
Annual |
Fines |
State Worker Adjustment and Retraining Notification (WARN) Act |
Notify workers of mass layoffs or plant closings. |
State |
As required |
Fines, back pay |
City-Specific Minimum Wage Ordinances |
Abide by local city minimum wage ordinances. |
City |
Per pay period |
Fines, back pay |
Commission Pay Compliance |
Ensure proper documentation and payment of commission wages. |
State |
Per pay period |
Fines, disputes |
Sexual Harassment Prevention Training |
Mandatory training for employers to train employees. |
Federal/State |
Annual |
Fines, lawsuits |
Workplace Safety Compliance (OSHA) |
Ensuring workplace safety and reporting injuries. |
Federal/State |
Ongoing |
Fines, legal issues |
Privacy Compliance with Employee Data |
Ensure compliance with laws protecting employee data. |
Federal/State |
Ongoing |
Fines, lawsuits |
Securing Payroll Data |
Implement necessary security measures for payroll data protection. |
Federal/State |
Ongoing |
Fines, reputational damage |
Direct Deposit Authorization Compliance |
Obtain authorization from employees for direct deposit. |
Federal |
Per pay period |
Fines, disputes |
State-Specific Family Leave Requirements |
Adhere to state-specific family leave payroll compliance. |
State |
As needed |
Fines for non-compliance |
Payroll Tax Reconciliation |
Ensure accurate year-end reconciliation of payroll taxes. |
Federal/State |
Annually |
Fines, interest |
Employee Retention Tax Credit Compliance |
Understand requirements for claiming credits for retaining employees. |
Federal |
As required |
Loss of credit, penalties |
Targeted Employment Area Compliance |
Understand and comply with tax credits for hiring in targeted areas. |
State |
As required |
Financial liability |
Income Tax Compliance for Non-Residents |
Withhold necessary taxes for non-resident employees. |
Federal/State |
Per pay period |
Fines, interest |
Immigration Compliance (I-9 Form) |
Ensure all employees complete I-9 forms properly. |
Federal |
Ongoing |
Fines, employment issues |
Affordable Housing Compliance for Employers |
Adhere to housing laws regarding employee living expenses. |
City/State |
Ongoing |
Fines, lawsuits |
Training and Development Compliance |
Offer mandatory training as per state requirements. |
State |
Varies |
Penalties, lawsuits |
Remote Work Payroll Compliance |
Understand tax implications and requirements for remote workers. |
Federal/State |
Ongoing |
Fines, penalties |
International Payroll Compliance |
Follow specific payroll laws for international employees. |
Federal/State |
Ongoing |
Fines, liabilities |
Payroll Services Provider Compliance |
Ensure third-party payroll processors are compliant with laws. |
Federal/State |
Ongoing |
Vendor liabilities |
Periodic Payroll Audits |
Conduct audits of payroll processes and documentation. |
Federal/State |
Annual |
Identification of violations |
Tuition Reimbursement Compliance |
Adhere to terms of tuition assistance programs. |
Federal/State |
Ongoing |
Penalties affecting the programs |
Access to Payroll Records for Employees |
Ensure employees can access their payroll records as per law. |
Federal/State |
As required |
Fines, legal ramifications |
Fraud Prevention and Detection Compliance |
Implement measures to prevent payroll fraud. |
Federal/State |
Ongoing |
Fines, losses |
Termination Pay Compliance |
Ensure final paychecks are issued in compliance with laws. |
Federal/State |
Upon termination |
Fines, legal claims |
Revenue Recognition Compliance |
Properly recognize payroll-related revenue as per accounting standards. |
Federal/State |
Ongoing |
Fines, audits |
Payroll Projection Compliance |
Maintain accurate payroll projections for budgeting. |
Federal/State |
Quarterly |
Reputational damage |
Posting Requirements for Labor Laws |
Post mandatory labor law posters in the workplace. |
Federal/State |
Ongoing |
Fines, employees' claims |
Labor Union Compliance |
Adhere to union agreements regarding employee wages. |
Federal/State |
Ongoing |
Penalties, disputes |
Severance Pay Compliance |
Ensure proper payment of severance pay where required. |
Federal/State |
Upon termination |
Legal remedies, fines |
Cooperative Pay Practices Compliance |
Ensure fair pay practices in cooperative enterprises. |
State |
Per pay period |
Fines, back pay |
401(k) Compliance |
Follow rules regarding management of 401(k) plans. |
Federal |
Annual |
Fines, penalties |
Employment Benefits Compliance |
Ensure compliance regarding employee benefits and their taxation. |
Federal/State |
Ongoing |
Legal challenges |
Health and Safety Training Compliance |
Ensure all employees receive training on health and safety practices. |
Federal/State |
Ongoing |
Fines, lawsuits |
Retention Incentive Compliance |
Understand compliance related to cash retention incentives offered to employees. |
Federal/State |
Ongoing |
Fines, penalties |
Flexible Spending Accounts Compliance |
Ensure compliance with FSA regulations regarding payroll. |
Federal |
Ongoing |
Fines, late fees |
Remote Worker Tax Compliance |
Comply with tax regulations for remote employees in different jurisdictions. |
Federal/State |
Ongoing |
Fines, back pay |
Disability Accommodations Compliance |
Ensure workplace accommodations for employees with disabilities. |
Federal/State |
Ongoing |
Fines, civil suits |
Commission Structure Compliance |
Ensure commission structures are compliant with labor laws. |
Federal/State |
Ongoing |
Fines, disputes |
Safety and Health Board Compliance |
Adhere to guidelines set by safety and health boards at the local level. |
Federal/State |
Ongoing |
Fines, legal ramifications |
Retirement Notice Requirement Compliance |
Provide employees with notices regarding retirement plan changes. |
Federal/State |
Ongoing |
Fines, legal challenges |
Tax Credit Application Compliance |
Ensure all tax credits related to wages and employment are properly documented. |
Federal/State |
As required |
Loss of credits, audits |
Mandatory Paid Leave Compliance |
Comply with laws mandating paid leave for employees. |
State |
Ongoing |
Fines, claims |
Internal Revenue Service (IRS) Reporting |
Report payroll information accurately to the IRS. |
Federal |
Quarterly |
Fines, interest on unpaid amounts |
Payroll Benefit Plans Compliance |
Ensure compliance with laws regarding payroll-related benefit plans. |
Federal/State |
Ongoing |
Fines, lawsuits |
Child Support Garnishment Compliance |
Ensure correct calculation and withholding for child support orders. |
Federal/State |
Per pay period |
Fines, legal issues |
Fringe Benefits Compliance |
Ensure proper valuation and taxation of fringe benefits provided to employees. |
Federal |
Ongoing |
Fines, penalties |
Impact of Local Ordinances |
Stay informed on impact of local payroll ordinances on payroll processes. |
City |
Ongoing |
Fines, back pay |
Wage and Hour Law Compliance |
Adhere to wage and hour laws applicable in the jurisdiction. |
Federal/State |
Ongoing |
Fines, litigation |
Seasonal Employment Compliance |
Understand compliance issues regarding seasonal employees. |
Federal/State |
Ongoing |
Fines, legal issues |
Training Subsidy Compliance |
Understand compliance issues regarding training subsidies for employees. |
Federal/State |
Ongoing |
Fines, claims |