Businesses when hiring new employees face a daunting task and
significant investment. They have to determine: Why they are hiring a new employee; what tasks that person will complete; will the new employee have the skills and knowledge to complete the job; will they fit in with the other workers and management; is there something in their past that disqualifies them from the job.
Because the cost and investment of hiring, training, and terminating a new employee if they don' t work out, is so high it is important for businesses
to minimize that risk.
The HR Pros at Richard A. Beauchemin, CPA / Carolina Accounting & Tax Service, PLLC put together this checklist to assist you when hiring new employees.
- Determine the need to establish a new or fill an existing position.
- Make sure an updated job description for the position is on file.
- Consult the job description to identify the required knowledge, skills, and experience required.
- Calculate the available compensation, including pay and benefits.
- Train managers on how to conduct effective interviews.
- create an advertisement or recruiting campaign for the job position. be sure to explicitly state where, when, and to whom materials should be sent.
- Contact applicants to schedule interviews. Depending on the position, standard interviews are scheduled for 20-60 minutes.
- Contact top candidates references.
- Meet with the relevant decision-makers to select a candidate
- Conduct background checks.
- Present the offer letter.
- Schedule New Employee and Department Orientations.
- Document all new hire paperwork into the employees HR file.
Because employee recordkeeping is so critical, we have put together a New Hires Forms Checklist. Go here to download your free copy of the New Hires Forms Checklist.
When it comes to compliance with labor laws, the government does not mess around. Did you know that violations of the minimum wage or overtime pay can result in civil penalties exceeding $1,000 or that penalties for non-compliance of youth labor laws can exceed $10,000?
As an employer, it is your responsibility to know and comply with the labor laws. As with taxes and other laws, ignorance of the law is not a defense against non-compliance.
- What is the FLSA and Why do I Need to Care
The Fair labor Standards Act (FLSA) Recordkeeping (29CFR Part 516) specifies the minimum wage, overtime pay requirements and youth employment standards. Failure to comply with the regulations set forth by the FLSA will result in penalties, fines and possibly imprisonment. Good accurate record keeping is key to showing compliance.
- Collect All Required Information
Employers must maintain records for at least 14 key pieces of data for an employee. Including:
- Employers full name and social security number
- Complete Address
- Birth date if younger than 19
- Sex and occupation
- Time and day of week when employee’s work week begins
- Total hours worked each week
- Basis on which employee’s wages are paid (e.g., $9 per hour, $440/per week, piecework)
- Regular hourly pay rate
- Total daily or weekly straight-time earnings
- Total overtime earnings for the work week
- All additions or deductions from employee’s wages
- Total wages paid each pay period
- Date of payment and pay period covered by the payment
- Record retention is Important
The employer must maintain key records for a minimum length of time. The table below shows the length of time these records must be maintained.
| Record Descriptions |
Min. Length of Record Retention |
| Payroll Records, Collective Bargaining Agreements |
3 years |
Records on how wage compensation is calculated (time cards, piece work tickets, wage rate tables, work and time schedules, and records of additions to or deductions from wages.
|
2 years
|
- Easy and Quick Access to Records is Critical
Records must be kept and maintained at place of employment or in a central records office and be readily available for inspection. An inspector may request copies of records or require confirmation of computations.
- Employers Have Flexibility on Timekeeping System
Employers are not restricted to any one system or method of timekeeping, but must have a timekeeping plan in place that is acceptable and can be proven to be complete and accurate.
Having information readily accessible, easy to sort, find, and produce on-demand demonstrates to an inspector or auditor that you are organized and have a system and procedures in place for the required documentation. Most importantly, it allows you to prove compliance with the labor laws. The more quickly you can satisfy the auditor, the more quickly you can get back to activities essential to managing and growing your business.
What system are using? sign up for a 30 day Free Trial for our automated timekeeping system or learn more about our automated timekeeping system.
Are you a small employer and have fewer than 10 full time employees whose wages average less than $50,000 per year? If so, you can save money in 2010 and even more money in future year.
Eligible small employers may receive up to a 35% tax credit on the portion of the premiums paid for employees in 2010. Even better news for small business owner's is that this credit is scheduled to increase to 50% by 2014.
Now the details. The credit starts to phase out at more than 10 full time equivalent employees and/or when the average salary for your full time equivalent employees (FTE) exceeds $25,000. At 25 FTEs the credit is phased out or if the average wage for your FTEs exceed $50,000.
A Full Time Employee (FTE) is defined as either a full time employee who works 40 hours per week or multiple part time workers whose hours add up to 40 hours per week.
When determining FTEs seasonal workers are typically excluded, unless they work for an employer more than 120 days during the year. A seasonal worker is defined as a worker who performs labor or services on a seasonal basis as defined by the Secretary of Labor. This would include workers employed during the holiday season.
To learn more about the Healthcare Tax Credit download our Healthcare Tax Credit Guide.
