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Employee compensation is a vital area for employers to understand

On Behalf of | Oct 5, 2021 | Business Law

Whether employees receive fair wages is something that has been a hot topic for debate. Still, whether what a person receives is deemed fair is not as important for some employers as making sure that payroll and tax liability matters are handled in accordance with Georgia laws and federal business laws. If employee compensation matters are not treated as important, lawsuits, tax audits and other disruptive issues could result. 

Even if a company has a payroll department, staying on top of these matters is important to both ensure that the employer remains in compliance with wage laws and to ensure that no employee commits embezzlement or other similar crimes. If an employee is suspected of stealing, a lawsuit may be necessary for the business owner to pursue compensation for any damages that may have occurred. While this can be a timely process, it may be a critical step to take. 

Additionally, employers may want to mitigate the chances of facing problems against which they need to defend by keeping the following information in mind: 

  • Both employers and employees have payroll tax matters to address. 
  • Employers need to account for wages paid to employees, the associated tax obligations and benefits paid for by the company for the employees, such as paid time off, insurance coverage and retirement contributions. 
  • Employers also need to determine whether paying employees on a salary basis or hourly wage basis is appropriate. 

Business operations come in many layers, and staying on top of those layers can be difficult but necessary. At the first sign of a problem with employee compensation, whether that be wage, taxation or theft related, it is crucial that Georgia business owners know their options for handling the issue as effectively as possible. Going over the details of the predicament with knowledgeable attorneys may be a wise starting point. 

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