As a general rule, all types of employee compensation are subject to income tax withholding and employment taxes.

With a true salaried position, the employee is paid the same amount regardless of the number of hours worked.

State labor laws always agree with federal labor laws.

States may set their own minimum wage rates higher than the rate required by the Fair Labor Standards Act (FLSA).

IRS Form 940 is the Employer's Quarterly Payroll Tax Return.

An employee's marital status is NOT required in order to calculate the amount of social security and medicare tax withheld from their wages.

An Employer Identification Number (EID) is not needed if your business has any employees.

An employee not paid by the salary method is automatically classified as nonexempt per the Fair Labor Standards Act.

An employer is not allowed to have different methods of calculating wages for different job categories.

Employee compensation includes any benefits paid by the employer on behalf of an employee.

Some payroll deductions such as retirement plans and health insurance may qualify for special tax treatment.

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, and child labor rules.

Per the Fair Labor Standards Act, if you want to classify an employee as exempt, you must pay him or her on the hourly basis.

All nonexempt employees are not required by law to be paid overtime for all hours worked in excess of 40 during a week.

An employer must match and pay the social security and medicare amounts deducted from their employee's wages

Employees fill out a Form W-2 to determine how much will be withheld from their payroll check for income tax.

Pretax deductions (benefits) are deducted from an employee's wages before tax is calculated and deducted.

Any person that works for you where you control what and how the work is performed is normally treated as your employee.

Employee benefits are often referred to as "PERKS".

It is not legal to pay some of your employess every week and others once a month.

Most businesses are exempt from federal and state unemployment.

Schedule SE is used to calculate self employment taxes.

The total earnings of an employess prior to any deductions is called Gross Pay or Gross Earnings.

Lawyers and accountantants that your business occassionally hire are normally considered to be your employees.