Paying Your Employees
The compensation package that you offer your employees is important not only
because it costs you money, but because, let's face it, it's the primary reason
employees work for you. Compensation packages with good pay and benefits can
help you attract and retain the best employees.
Regarding the payment of wages or salary to employees, there are a couple of
areas that you need to concern yourself with:
what to pay employees: pay programs, just like employment itself, have a
life cycle. From the moment you bring an employee on until the moment that
employee terminates employment with you, you'll run into issues that need
your attention, like finding out how much other employers are paying, how to
negotiate the salary for a new hire, or deciding what kind of raise a
current employee should get.
with wage and hour law: almost every employer has to comply with certain
laws concerning minimum wage, overtime pay, equal pay for equal work, child
labor, recordkeeping, and posting. The laws can be tricky, involved, and
further compounded by state wage and hour laws. It's crucial for you, as an
employer, to understand these laws and how they apply to you.
payroll: in addition to the "life cycle" issues of a pay
program, you'll face the recurring job of doing payroll and the tasks it
entails, including: setting up a payroll system, calculating the hours an
employee works, calculating the employee's regular pay rate, making
deductions from the employee's pay, and getting the money into the