In your small business, if you have gotten to the point where you are able to hire a few employees, you want to be just and fair with them from the beginning. However, according to recent reports, many small business owners are breaking employment laws without even realizing they are breaking them. One of the best ways to ensure that at least you aren’t breaking any tax laws is to use a site like Wage Filing to take care of filing taxes and answering some tax questions. With that being said, read on below for a few of the top ways your small business might be breaking the employment laws and be none the wiser.
The Flexible Lunch Hour
While you may be trying to be nice, giving your non-exempt employees the option to skip their lunch, so that they can get out of work a little early, maybe breaking an employment law. The law is clear that everyone should take a lunch break and in most states you have to provide a lunch break no later than their fifth hour of the working day. If you are giving your employees flexible lunch hours, it is best to come up with another way of doing things.
Saying that Your Employees Are Independent Contractors
The waters are really, really murky on this law since the invention of the Internet, as it is populated with independent contractors galore. Not only is this an area ripe for a lawsuit, but it can also get you in trouble with Uncle Sam if you aren’t careful. Your employee may love the idea of being an independent contractor until they realize there is no paid leave or vacations, no insurance, and no workman’s compensation to be paid out. It’s not a sin to have independent contractors, just be sure that you are doing the right thing and staying abreast of the current laws with the IRS and any other employment laws.
Letting Employees Make the Decisions
When it comes to letting employees make the decision as to how many days a week and how many hours they can work a day, it can get really tricky. The law restricts how many hours and how much an employee can work without being paid overtime. If you are going to let your employees work their own hours keep up with how many so you don’t run into overtime laws and you should be fine.
Loans from Paychecks
Believe it or not, deducting personal loans from an employee’s paycheck is against the employment laws. If you are going to loan your employees money, set up a written agreement for them to pay you back, do not take it out of their paycheck, or you may be breaking the law.
These are just a few of the ways that you could be breaking the law when it comes to having employees in a small business. For more information on filing your taxes as a small business contact Wage Filing today.