New Federal Minimum Wage is in Effect, Are Your Clients in Compliance for Payroll?

Wednesday, August 05, 2009

Effective on July 24, 2009, under the Fair Labor Standards Act (FLSA), the federal minimum wage for covered nonexempt employees is $7.25 per hour. Do your clients have all the necessary information for their payroll to be completely in compliance?

In addition to the new federal act, many states also have minimum wage laws. When an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate. So you may be wondering, which of your clients need to comply?

The minimum wage law (the FLSA) applies to employees of companies that have annual gross volume of sales or gross receipts of at least $500,000. It also applies to employees of smaller firms if the employees are engaged in interstate commerce or in the production of goods for commerce, such as employees who work in transportation or communications or who regularly use the mails or telephones for interstate communications. It also applies to employees of federal, state or local government agencies, hospitals and schools and it generally applies to domestic workers.

Sound confusing? Well, it is. Employers also need to consider:

·         Are their payroll systems calculating the correct wage?

·         Are overtime calculations being done correctly?

·         How are they handling employee retention of tips?

·         Do they know that the minimum wage is different for young workers, workers with disabilities, full-time students and student-learners?

·         Do they know which FLSA exemptions from the minimum wage apply to their workers?        

These are just a few of the many implications the new minimum wage has on payroll. If your clients are feeling overwhelmed and not sure they are processing their payroll correctly, Infinisource can help.

We have a team of payroll experts and a payroll processing system that can take the burden of understanding the implications of the FLSA and any other laws, acts or regulations that affect payroll. With Infinisource Payroll, we make payday simple, direct and compliant!

Do you and your clients want to learn more about payroll compliance? Infinisource seminars and webinars can help you better understand the pitfalls of payroll and how you can add value to your client relationships. We can even bring a payroll seminar to you with our in-house seminars. For more information, go to www.infinisource.net for a complete list of seminars and webinars available to you and your clients.

Contact us today at 800-300-3838 to learn more about Infinisource Payroll.