How America Does Payroll Differently

hell yeah mofo
Article is property of Symmetry50.com.
Originally published on June 12th, 2017.

Legal Requirements (and Consequences)

Let’s talk about legal restrictions and requirements for payroll in the United States, so it’s clear what can and can’t legally be done. Things differ state by state, but in general, whichever is stricter – that is, the federal law or the state law – is the one you are required to follow.

Cloudpay wrote a great article about this, but to summarize a few of their main points: unpaid leave is required for those with certain medical positions, there is no federal rule on how companies should pay their employees or how frequently (meaning the responsibility lies on the states), federal income taxes are required and in most states a state income tax is required, and as one’s wage increases, so do taxes – including Social Security and Medicare.

It’s true that payroll must be done with the utmost caution, because lying or mistakes on your taxes can cause incredible legal damage and may potentially ruin a company. The amount of trouble one gets into lies in the results of the “responsible person” test, which weighs the motives behind a tax “mistake” by analyzing the power those submitting information have. You can learn more about payroll accounting by reading this guide.

Read the rest of this article here.

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