Federal and state wage and hour laws regulate the method of payment
of wages, the payment of wages upon termination of employment, allowable deductions
from employee paychecks, the withholding and payment of employment taxes,
wage garnishments, recordkeeping, and the maintenance of payroll records.
Employers must withhold from employee paychecks certain tax payments including
federal and state income taxes and FICA. To determine the proper withholding
for federal and state income taxes, employees must complete a Form W-4 and
provide the employer with their Social Security number. At the end of each
year, employers are required to report on a Form W-2 each employee’s earnings
and the taxes withheld. Employers must also have an employer identification
number (EIN) for reporting and paying federal and state unemployment and payroll
taxes. In addition, employers are required to report new hire information
to a state directory as part of federal legislation on welfare reform.
Summary for [Your State]