His ignorance was an Empire State Building of ignorance. You had to admire it for its size. Dorothy Parker, 1893 – 1967
When it comes to payroll, the following statements would be best to avoid:
I don’t have to pay overtime because I didn’t authorize it. (It doesn’t matter – you may choose to discipline the employee, but you still have to pay them for the hours worked including the overtime premium).
I’m tired of paying overtime. I’ll just put them on salary. (Bad idea. The question is whether the employee is exempt from overtime. Paying an employee a salary is irrelevant to this determination).
It’s easier to pay my employee as contract labor. (Do you like wearing a big bullseye that says, “Audit me.”? The IRS and more importantly, the states are looking for as much money as they can in these times of declining tax revenues – don’t get in their path.)
I don’t need an I9 or an Affirmation of Legal Work Status from the Colorado Department of Labor - all of my employees are legal. (Doesn’t matter – audits can either be no big deal or a real pain depending on how prepared you are. Get both of the these documents dealt with when you hire each employee).
All retirement plans are not only pre-tax for federal and state, but are pre-tax for social security and medicare also. (No, no, no.)
This garnishment can wait when the employee can better afford it. (Not a good idea unless you want to pay the garnishment instead of the employee).
All of the above done the wrong way could cost an employer a lot of time, aggrevation and money. If you’re unsure, google the question. If we can help, contact us.
We’ll help you keep your head out of the sand.
Bryan Dear
