Paying employees can be a complicated issue. There are a number of federal, state and city/school district withholdings that an employer must handle. Payroll processing companies are a good way to manage your payroll as they have the expertise to cover all the tax liabilities for a fee. Here are some resources for understanding what is involved in paying your employees.

Payroll Calculators

The Department of Labor manages the regulations on paying overtime. If a position is categorized as “exempt”, it means the position does not qualify for over time pay. If the position is “non-exempt”, if they work over 40 hours a week you do have to pay overtime. The rules for over time pay are very straight forward but not necessarily understood universally. It is vital to understand the difference in the types of positions and what counts for over time. See the United States Department of Labor page for all the information.

Minimum wage laws are governed by the state. To see the latest information on minimum wage, visit the Ohio Minimum Wage Laws page.

If you choose to use Independent Contractors (1099s) vs. employees, it is vital you understand the legal ramifications and so does the 1099. Review that information at the IRS’ guide to 1099’s.