|
Hiring EmployeesWages for EmployeesWages subject to Federal employment taxes include all pay you give an employee for services performed. The pay may be in cash or in other forms. It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. It does not matter how you measure or make the payments. Also, compensation paid to a former employee for services performed while still employed are wages subject to employment taxes. Publication 15-A, Employer's Supplemental Tax Guide, provides additional information on wages and other compensation. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. The federal minimum wage is $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. Some state laws provide greater employee protections; employers must comply with both. Overtime pay at a rate of not less than one and one-half times their regular rates of pay is required after 40 hours of work in a workweek. Contact the U.S. Department of Labor, Wage and Hour Division for more information about the FLSA. Other Federal laws may have additional requirements that apply to certain employers (for example, government contractors and firms that hire certain non-immigrant aliens). You may obtain more information about these laws from the Wage and Hour Division.
Publication
15
(Circular E), Employer's Tax Guide Web Links: |