When you start a new job, there’s tons of paperwork; forms, applications, benefits package information (if you’re lucky), tax forms and more. Typically with larger companies, but becoming more and more common with smaller businesses, too, is an agreement between employee and employer about how to handle employment disputes — and it pays to read this document all the way through.
Recently, I was speaking with a group of business owners about the need for keeping time records and who is, and isn’t exempt from this requirement. One business executive said, ‘I don’t ever have to worry about that, all my employees are paid a salary.’ Another said, ‘I don’t have to keep time records because my employees never work overtime.’ Wrong response! Why? Read on.
Anyone who has a NJ-based business knows the ‘to do’ list for starting and keeping a company running is long and costly. Incorporating or legalizing the business, planning for any scenario, calculating operational and labor costs, insurance, leases, zoning permits, marketing and advertising — and the list goes on and on. Any good lawyer will tell you: skipping or overlooking any detail along the way can have serious ramifications later. One area not to be missed is properly classifying your workers as employees or independent contractors. Many businesses either mistakenly overlook this, or believe they can save on payroll taxes by calling their workers “independent contractors” rather than employees. Any short term savings obtained through avoiding payroll taxes pale in comparison to the penalties which could be charged against your business down the road. Ensuring proper classification of your workforce is a critical step for every employer.