• Pay,  Uncategorized

    Setting up payroll

    Setting up payroll Deciding to hire your first employee on payroll is a big step, but millions of companies do it, so you can too. Payroll is sometimes considered an HR function because of the employment regulations that go with it and it is sometimes considered an accounting function because compensation is one of your biggest expenses. It is definitely both. As you grow, you will eventually make the decision where it resides in your business. But for now… Before you begin Whether you plan to run payroll on your own or use a third party vendor to do it, there are some things only you can do. Each state may…

  • Uncategorized

    Where you do business matters

    When it comes to human resources, where you do business makes a difference. Right now, I am just talking about doing business in the United States. Doing business in another country is a totally different situation. Whether your company is doing business in San Francisco vs. Atlanta will determine your corporate tax rates, environmental ordinances, overtime regulations, vacation pay out, sick leave policies, minimum wage and more. California is known to be the most employee friendly state and one of the least employer friendly. But those of us who live in California, we love the lifestyle and will sacrifice a lot to live here. Where you register your business is one…

  • Uncategorized

    Who are my employees?

    There are generally two categories of people that work for you and get paid: Employees and Independent Contractors. Startups often call anyone working on their business an “employee.” Technically, an employee is anyone you pay via payroll. A paid intern (that you pay via payroll) is an employee. A virtual assistant you pay through Upwork or Zirtual or send a check is technically not an employee. You may ask,”What difference does it make whether I call them employees or not?”  If you are calling an independent contractor an employee and giving them business cards, having them keep regular business hours, providing their equipment, and a number of other things, you may be…

  • Interns

    Do I have to pay my intern?

    There are two types of internships: paid and unpaid. The law regarding internship pay is governed by the Fair Labor Standards Act, a 64 page document written years ago with numerous amendments that spells out various laws regarding employment. The rules are a bit complicated and the law says that FLSA is exclusive to employers who have an annual revenue of a minimum of $500,000. However, the FLSA also states that any employer regardless of income doing interstate commerce is subject to FLSA. It further defines interstate commerce as email, phone, and other communications across state lines. You may want to err on the side of caution and assume your are subject to FLSA.…

  • Pay

    Minimum Wage – How much do I have to pay my employees?

    Employees that you pay via payroll are required to make minimum wage. Minimum wage laws vary from city to city. While, at the writing of this article, the Federal minimum wage is $7.25/hour and hasn’t changed since 2009, the minimum wage in Berkeley where ProfHire offices are located is $12.53/hour as of October 1, 2016. If your state or city has a different minimum wage than the federal government, you want to follow that minimum wage. Each state has a minimum wage and no city in the state can have a minimum wage below the state set wage. You can get information on state minimum wages at the United States Department of Labor…