- David Warren
- Last Active
- No Roles
I do not remember the exact dates the laws were passed for things like direct deposit, 401(k), and Section 125, but I remember my employer implementing all of them in the 1980s and we were a fairly early implementer. Before my time, but if we were talking 1960 or so, we are talking largely cash only, no checks. I actually did temp work at a cash only place in the 1970s. Payroll issued a slip and the employee would take it to a different floor to cash it, Anyone who did ADP way back when might remember a "cash page" spelling out exactly how much currency you needed.3
Stay out of OH. Along with PA these states are Payroll Hell.3
Glad I have missed that one. [bleep happens]. If it happens more then once, then someone gets fired. Maybe the payroll manager. All employers have problems, although not usually the one the last poster mentioned. First time it happens, you can plead ignorance. 2nd and 3rd times the plea is stupidity and that gets old quickly.
My last employers had a lot of visa people. Which is fine. But visas expire. They change types. When these things happen, tax requirements change. In a perfect world, HR would keep track of such things and follow up. I have never lived in such a world. Payroll did the following up on visas, not because it is normally a payroll function, but because HR's mistake becomes payroll's major problem. That happens enough times, you take the weak link out of the loop.
Same thing with deductions. If HR is not competent to handle deductions, talk to Very Senior Manager and get someone else to do it. But this notion that it is payroll responsible that an error was made 18 months ago, neither the employee or HR caught it, that payroll did EXACTLY what they were told to do and it is somehow payroll's fault leaves me very cold. If you are going to make me clean up your messes, give me the staffing to handle the front end and avoid the mess in the first place.3
You have several legally unrelated issues here:
- Employee vs. independent contractor (IC) is a factor of statutory law. It cannot be waived. There is a ton of law and a ton of court decisions, including a few SCOTUS here. If I am going to say that Jan in an IC, then Jan better have a lot of clients and be advertising to get more. Plus pass a bunch of other tests. One "client" ICs are very unusual legally.
- Benefits is a function of a whole different set of laws. Mostly ERISA but many benefits have laws specific to that benefit. So, look up each benefit one at a time and do not assume that there is a one-size-fits-all answer here. Generally speaking only employees get benefits. Giving an IC benefits by itself would be a factor in saying that a worker is really an employee.
- This is not DIY. You need a really good attorney if you want to play these type of games. There are a lot of companies who thought they had good attorneys and still ended up in court for the exact sort of thing you are talking about.
Not the question but the big thing is having an I-9 with no obvious missing required fields for every active employee. The key is if you are audited you want the auditors to never come back from lunch. At least once a year, bring a temp in and make sure that you have a "valid" I-9 for every current employee. An alpha binder works great. Yes, there is a rule that you need to keep the I-9 xxx days after termination, which is fine, but if you already passed the big test (the one I mentioned first), the chances the auditors are going to dig in and look for the small stuff is poor. If you fail the first test, you are fired, and have no real interest in what the auditors turn up later on.
Some people put the I--9 in the personnel file. BAD IDEA. Get the I-9s together and do not let ICE auditors dumpster dive your personnel files.1