An Employer Identification Number (EID) is needed if your business has any employees.

Lawyers and accountants that your business periodically hire are normally considered to be your employees.

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

It is perfectly legal to pay some of your employees every week and others once a month.

Employees fill out a Form W-4 to determine how much will be withheld from their paycheck for income tax.

Some employees may be eligible for what is called an Advanced Earned Income Credit that is included in their pay check.

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

State labor laws always agree with federal labor laws.

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

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

No employee benefits are required by law.

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

Employee Benefits are often referred to as "Perks".

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

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

States may not set their own minimum wage rate higher than the rate set by the Fair Labor Standards Act.

A good policy is to require authorizations signed by employees for deductions from an employee's wages.

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

As a general rule, a business that does not provide fringe benefits to employees will have just as a good a chance at hiring skilled employees.

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

You as an employer are allowed to have different methods of calculating wages for different job categories.

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

An employer is not required to pay overtime to any salaried employees.

All nonexempt employees are required by law to be paid overtime for all hours worked in excess of 40 during a week.