Laws on Payroll Checks

One of the basic laws of payroll is that employers are required to pay their employees for services rendered. However, it is up to the employer to determine a reasonable payment frequency. Most payrolls occur on a weekly, biweekly, semi-monthly or monthly basis.

Hourly Paychecks

An employer is required to pay hourly employees no less than the federal minimum wage or the state minimum wage, whichever is higher. Employers should check with their state's department of labor to determine if their state minimum wage is higher than the federal minimum wage.

Salaried Paychecks

Salaried employees usually hold executive, professional or management positions. Unlike hourly employees, salaried employees are not required to complete time sheets or to punch time clocks because they are paid a set wage for each pay cycle. They are paid for a full day's work even if they work a half-day. If they have no hours in a given week, then they are not paid for that week. If they have exhausted all of their sick, personal or vacation days, an employer is not required to pay them for any excess days taken.

Overtime Pay

Hourly employees who work more than 40 hours are entitled to overtime pay at the rate of time and a half of their hourly wage. The employee must physically work the 40 hours to get overtime pay. For example, if she works 32 regular hours, took eight vacation hours and then worked four hours of overtime, she is not entitled to overtime pay. She would be paid all 45 hours at her regular pay rate. Employers are required to keep a record of employees' time and pay. Most hourly employees are required to complete weekly time sheets documenting their hours worked for the week. Most salaried employees are exempt from receiving overtime pay. However, an employer can choose to pay overtime to salaried employees.

Taxes

Employees are required to pay payroll taxes. The employer is responsible for deducting these taxes from the employee's paycheck for each payroll period. Statutory taxes include federal taxes and in many cases state and local taxes. The amount of federal tax deductions depends on the employee's filing status and his allowance amount. State and local tax deductions vary by state. When the employee receives his paycheck, his take-home pay is his net pay, which is the amount paid after taxes and voluntary deductions have been deducted from the gross pay.

Last Paycheck

When an employee ends her employment, depending on her state's pay laws the employer must issue her last paycheck immediately or during the next payroll disbursement. How the employee ended his employment and how much notice he gave can also determine how quickly he receives his final paycheck. If the employer does not distribute the employee's last paycheck in a timely manner, the employee can contact his state's department of labor for assistance.

References

• Compliance Assistance -- Fair Labor Standards Act