Heather Landau

Doing payroll in Oklahoma involves more than paying employees. In addition to filing federal taxes, you must file state income and unemployment insurance taxes. There are exemptions for some workers, like military spouses, and the state has its own W-4 form (the document you’ll have new employees submit upon hire) with different withholdings than those for federal taxes. If you need help paying and filing your payroll taxes in Oklahoma, small business software like can help. QuickBooks Payroll calculates your payroll tax amounts and assumes liability for any errors its reps make. You can also pay your employees via direct deposit and run an unlimited number of pay runs at no additional cost. Get 50% off Payroll Software for 3 months. Running Payroll in Oklahoma—Step by Step Instructions Doing payroll in Oklahoma requires some additional steps and paperwork. Below are the basics for federal and state compliance. Step 1: Set up your business as an employer with the IRS. You need an employer identification number (EIN) and an account in the Electronic Federal Tax Payment System (EFTPS). Step 2: Register your business with the state of Oklahoma. Register your business and keep it current such as if you change an address or ownership structure. Fill out the WHT10006 and file it through the Oklahoma Taxpayer Access Point (OKTAP). Create an account with EZ Tax Express to pay unemployment insurance. Fill out an OES-1 to get an Oklahoma Unemployment Insurance Tax Account Number. Step 3: Create your payroll process. If you work for an established business, you may have inherited a payroll process. But if your company is new, you may need to start your payroll process, which means deciding how often you’ll be paying employees (Oklahoma law states the employers must pay wages at least twice a calendar month), when you’ll pay them, how you’ll track and calculate hourly employees’ work time, etc. Overall, you can opt to do payroll by hand, set up an Excel payroll template, or sign up for a payroll service to help you handle your Oklahoma payroll. Step 4: Collect employee payroll forms. Do this when onboarding new hires, and make sure employees know to give you updates when they have life changes, like getting married or having a new child. Forms include the Oklahoma W-4 Form and the federal version, I-9, and direct deposit information. If you have nonresident employees who want to be exempt from tax withholdings, have them fill out the form OW-11. If you have a worker who is a military spouse, they may want to fill out the OW-9 to be exempt from withholdings. Step 5: Collect, review, and approve time sheets. This step is one you’ll do regularly, as keeping track of employees’ hours is essential for ensuring accurate payroll. Whether you use paper time sheets or time and attendance software, review all time sheets for accuracy and discuss any errors or issues with employees right away. Having employees sign their time sheets is a good idea, whether they do so electronically or by pen on paper. Step 6: Calculate payroll and pay employees. Use the employee W-4 form and the Oklahoma Tax Tables found online to determine how much per employee you need to withhold for income taxes. The vast majority of companies and employees use direct deposit, but cash (not the best way) and paper check are also options. Make sure that you are paying your employees at least the Oklahoma minimum wage, which is currently $7.25 an hour. Step 7. File payroll taxes with the federal and state governments. Follow the IRS instructions for federal taxes, including unemployment. For Oklahoma income tax withholdings: File electronically through OKTAP. Some payroll software services have free payroll tax calculators or build them into their programs. Be sure to use the state W-4 form when making calculations. In Oklahoma, you must report the number of employees paid, wages paid, and the sales tax withheld from wages each quarter. To remit withholdings, follow the schedule below. If, in the previous fiscal year, you withheld over $5,000 in taxes per month, on average, you must remit electronically. For Oklahoma unemployment insurance (UI) taxes: File electronically via EZ Tax Express. You can manually fill in the report or create a TXT document and upload it. Find the instructions on the OESC website. Oklahoma state UI tax reports are due by the following dates: Step 8. Document and store your payroll records. It’s important to keep records for all employees, even those terminated, for several years. Learn more in our article on retaining payroll records. Step 9. Do year-end payroll tax reports. These include the federal forms W-2 (for employees) and 1099 (for contractors). Employees and contractors must have these by Jan. 31 of the following year. You also need to supply the state with your W-2/W-3 and 1099 via OKTAP. The W-2/W-3 are due Jan. 31, and 1099s are due March 31. Download our free checklist to help you stay on track while you’re working through these steps: Oklahoma Payroll Laws, Taxes & Regulations Doing payroll in Oklahoma isn’t particularly more complex than the majority of other states. You are required to withhold and pay income taxes and remit unemployment insurance taxes, but most of the regulations align with federal laws; this means you’re less likely to be confused with conflicting rules. Oklahoma Payroll Taxes The only Oklahoma payroll tax that employers are responsible for paying out of pocket are state unemployment taxes (SUTA). Social Security and Medicare (FICA) are a given, but they’re federal taxes that all employers pay, regardless of state. Oklahoma does charge a state income tax—no local or municipal taxes, though—so you’ll need to set up a system to withhold them from your employees’ paycheck so that you can send them to applicable tax agencies. Unemployment Insurance Taxes Oklahoma charges unemployment insurance taxes on income up to $24,000 per year. There have been no changes to the rates for 2022. Tax rates for experienced employers range from 0.3% to 7.5%. The new employer rate for 2022 (which also has not changed from 2021) is 1.5%. Income Taxes To determine how much you need to withhold in state income taxes from each employee’s paycheck, print and have each new hire complete Form OK-W-4. To determine federal income tax withholding amounts, use Federal Form W-4. In general, Oklahoma requires income tax withholdings for all employees in Oklahoma, with the following exceptions: Farmworkers earning less than $900 per month Domestic workers Payments for services not in the course of the employer’s trade or business, unless the payment is over $200 in a calendar quarter Non-residents whose income in any calendar quarter is not more than $300 Clergy You need to withhold state taxes for employees who are not residents of Oklahoma unless you are an LLC or S corporation (S-corp) and your employee applies for an exemption. If you have fewer than 100 members in your company, you automatically qualify for an exemption. Withholdings must be filed quarterly, but if you are paying more than $500 in payroll per quarter, then you need to remit withholdings monthly. These are due by the 20th of the month following the month of payment. Oklahoma charges late fees of 10% of the amount of tax, or 10% of the amount of underpayment of tax. If it’s not paid within 15 days after the due date, it’s considered delinquent. The state also charges interest at the rate of 1.25% per month on any overdue amounts. Minimum Wage Oklahoma sets its minimum wage at $7.25 an hour, which mirrors federal regulations. You’re required to adhere to this regulation if you have a business in Oklahoma with at least 10 employees and/or gross more than $100,000 in a year, and/or are involved in doing business between states. Exemptions include those covered under the federal Fair Labor Standards Act (FLSA) and the following: Those working in an executive, administrative, or professional capacity Outside salespersons Farmworkers Employees of any carrier subject to Part I of the Interstate Commerce Act Students under 22 Workers under 18 who are not graduates of vocational or high school Part-time employees working less than 25 hours per week and not on permanent status If you pay tipped employees—employees who receive at least $20 in tips monthly—you are eligible to pay them a tipped minimum wage; this will only work if their tips boost their total pay to align with minimum wage regulations. The maximum tip credit you can apply against the minimum wage is $5.12 per hour. Employers must pay tipped employees at least $2.13 per hour and should apply tip earnings toward the balance of the minimum wage obligation. Overtime Oklahoma has no overtime laws. However, that does not exempt you from federal wage and hour laws, which state that nonexempt employees be paid 1.5 times their regular hourly pay rate for any hours worked over 40 in a seven-day workweek. Different Ways to Pay Employees In Oklahoma, you may pay employees electronically (via direct deposit or pay card, if the employee consents), by check, or in cash. If you opt to pay electronically, the employee must be able to access all of their wages without incurring any related deductions for withdrawals. So, for example, you cannot pay by pay card if it deducts a percentage per transaction from their paychecks—such as through PayPal, for example. Oklahoma Pay Stub Laws The federal government doesn’t regulate pay stubs, but most states have their own rules. Oklahoma is considered an Access State, which just means employers are required to provide employees with access to itemized pay statements. This doesn’t have to be printed or distributed with paper checks but can also be populated electronically, via an HR or payroll portal or even email. Minimum Pay Frequency You must pay employees at least twice each calendar month on regular paydays, which you designate in advance. No more than 11 days may elapse between the end of the work period and the regular payday. Paycheck Deduction Rules Deductions include amounts withheld for FICA, federal or state income tax, SUTA, and garnishments. Other deductions must be agreed upon in writing and can include: Insurance premiums Deductions to pay off advances on wages Reimbursement for uniforms The employee’s share for benefits like health insurance Deferred compensation plans or investments provided by the employer for the employee Compensation for breakage, loss of merchandise, inventory shortage, or cash shortage caused by the employee Final Paycheck Laws in Oklahoma If an employee leaves for any reason, you must pay them their final wages by the next regular payday as usual or certified mail if the employee requests it. This is convenient compared to states that require a next-day turnaround or change expectations based on whether the employee quit or was fired. If an employee dies, you are required to pay the surviving spouse or children all wages and benefits earned by the employee, up to $3,000. Oklahoma HR Laws that Affect Payroll Many of Oklahoma’s HR and labor laws mirror federal regulations. There are some specific rules governing how long minors can work and be paid for, but it’s nothing complicated. In addition, there is no requirement to provide state disability insurance—some states have laws requiring it. Oklahoma New Hire Reporting All newly hired employees must be reported to the Oklahoma Employment Security Commission (OESC) within 20 days of being hired if you are reporting by mail or fax. Employers who report electronically must report at least twice monthly, within at least 20 days of the person being hired. For the date started to work, use the first date the employee performs services for a wage. Breaks & Lunches Oklahoma only requires breaks for children under 16, and federal law has related regulations. Ultimately, it’s up to company policy how to handle lunches and break times. If you set a standard break procedure in your employee handbook, the State of Oklahoma will enforce it, so be sure you’re following the rules you set. Vacation & Sick Leave Employers are not required to provide workers paid or unpaid PTO, including sick leave or holidays. However, if you set a policy, you must adhere to it. Need help calculating PTO accruals for your employees? Use our free calculator below: Paid Family Leave Paid family leave laws closely mimic federal law in the Family and Medical Leave Act (FMLA) and apply to businesses that have had 50 or more employees for at least 20 weeks in the current or previous year. Employees can take FMLA leaves if they: Have worked for the company for at least a year Worked 1,250 hours worked in the previous year Work at a location with at least 50 employees within a 75-mile radius Qualified employees can take up to 12 weeks in a 12-month period to: Bond with a child (newborn, adopted, or fostered) Recuperate from a serious health condition Care for a family member with a serious medical condition Handle family emergencies arising from a family member’s military service Employees can take up to 26 weeks of leave to care for a family member who suffered a serious injury while on active duty in the military. This is a per-injury, per-service-member entitlement, so they cannot take 26 weeks one year and 26 the next for the same injury. You do not have to pay wages during FMLA leave, but you must continue health insurance. Employees can take accrued leave during FMLA leave. Maternity Leave Oklahoma does not have specific maternity leave laws, but incapacities due to pregnancy are covered under paid family leave. This includes severe morning sickness. State Disability Insurance Oklahoma does not require state disability insurance. However, providing such a policy makes you a more attractive employer to potential applicants and protects you and your employees. Child Labor Laws The minimum age for employment is 14, and child labor laws apply to children up to 16 years old. Children can work up to three hours on school days and eight hours on non-school days, up to 18 hours in a school week or 40 hours in a non-school week. They earn minimum wage and vacations like any other worker, but also receive an hour lunch break every eight hours or a 30-minute lunch break every five hours. Payroll Forms As you learn how to do payroll in Oklahoma, you’ll find there are a plethora of forms, but not all are needed, and most are self-explanatory. Here are the ones most likely to affect payroll. Oklahoma W-4 Form Oklahoma has a W-4 form for employees to fill out. This allows them to claim different withholdings for their state taxes than for their federal taxes. This was introduced in 2018 in response to the changes in federal tax brackets. Employees are required to fill out this form. Other Oklahoma Withholding Forms OW-9-MSE, Annual Withholding Tax Exemption Certification for Military Spouse: If you have employees claiming exemption under the Servicemembers Civil Relief Act. OW-11, Registration for Oklahoma Withholding for Nonresident Members OW-15, Nonresident Member Withholding Exemption Affidavit: If you are an LLC or S-corp with non-resident employees, you can use this form to have them request exemptions from withholding Oklahoma income tax. You only need to do this if you have over 100 members in your company. OW-15-A, Transmittal of Nonresident Member Withholding Exemption Affidavit: for filing. WTH10001, Oklahoma Quarterly Wage Withholding Tax Return: Use this to calculate the quarterly withholdings and enter them into the payment coupon. Due by the 20th of each month. WTH10004, Oklahoma Withholding Payment Coupon for Payors not Paying by EFT: To include with monthly payments of withholdings if you do not pay electronically. WTH10006, Online Oklahoma Wage Withholding Tax Application: Every business that is liable for tax withholdings must fill this out. OES-1, Application for Oklahoma UI Tax Account Number: You’ll use this when filing unemployment taxes. Fill it out, sign it and submit it to the Oklahoma Employment Security Commission. Federal Payroll Forms Here’s a list of general payroll forms most small businesses need. W-4 Form: To help employers calculate taxes to withhold from employee paychecks W-2 Form: To report total annual wages earned (one per employee) W-3 Form: To report total wages and taxes for all employees Form 940: To report and calculate unemployment taxes due to the IRS Form 941: To file quarterly income and FICA taxes withheld from paychecks Form 944: To report annual income and FICA taxes withheld from paychecks 1099 Forms: To provide non-employee pay information that helps the IRS collect taxes on contract work For more information about the federal forms, read our guide on federal payroll forms. Oklahoma Payroll Tax Resources/Sources Oklahoma Tax Commission (OTC) Website: The OTC does not mail documents, so go here to download anything you need. It also includes information about payroll taxes, sales, and other taxes. Oklahoma Business Forms Page: Links to all the state business forms, and notes on whether they allow electronic filing. Oklahoma Employment Security Commission: Not only contains information and resources for unemployment taxes, but also for hiring employees and more. Oklahoma Department of Labor Wage Law: A downloadable PDF of labor laws for Oklahoma. Also, check with your payroll software for resources and state-specific features. Bottom Line Oklahoma’s wage and employer tax laws are not complex, necessarily, but there are quite a few to consider. You need to use the Oklahoma W-4 form for determining withholdings and may have additional forms for special cases, like spouses of military members. And, stay abreast of changing payroll laws and regulations so that you don’t get penalized.

To do payroll in Indiana, you’ll need to comply with some state rules in addition to federal payroll laws. For instance, Indiana has a state income tax of 3.23%, and its counties also have their own taxes—you need to calculate withholdings for both. There are also reciprocity agreements with five states, meaning you’ll withhold taxes based on where the employees live vs where they work if they’re in any of the alternate states. However, the other payroll and HR laws are generally straightforward. If you’d like help calculating and processing your Indiana payroll, we recommend . It pays employees by check or direct deposit and tracks payroll and tax laws for all 50 states, including counties, so you don’t incur penalties for mistakes or late payments. Sign up today and get 50% off for 3 months. A Step-by-Step Guide to Running Payroll in Indiana Step 1: Set up your business as an employer. At the federal level, you need to apply for your Federal Employer Identification Number (FEIN) and an account in the Electronic Federal Tax Payment System (EFTPS). Step 2: Register with the State of Indiana. Register your business at INTIME, the Indiana taxpayer information management engine. You’ll need your EIN, business name and address, and the names of the officers in the business. Then, create a user account to file your tax and other paperwork. You also need to register as a new business on the Uplink Employer Self Service website so that you’ll be able to pay state unemployment insurance taxes. Step 3: Set up your payroll process. You’ll need to set up a payroll process and establish a set schedule of paydays that are semimonthly or biweekly at least. Determine how you’ll pay employees, what period each pay day will cover, and even the process you’ll follow to collect employee forms and other payroll documents. Step 4: Collect employee payroll forms. Some payroll forms are best filled out during employee onboarding. Forms include W-4, I-9, and direct deposit information. For Indiana, you need the WH-4 or WH4MIL, as well as the WH-47 for employees that live in reciprocity states. Step 5: Collect, review, and approve time sheets. If you have hourly or nonexempt employees, you’ll need to track their work hours. Most employers create their own time sheets or use time and attendance software—our free time card calculator can ensure your totals are correct. Be sure to plan for approvals so that you can pay employees within 10 days of the end of the pay period—and if the regular payday is a non-work day, then arrange payment for the day before. Step 6: Calculate payroll and pay employees. You can use software, a calculator, or even Excel to calculate payroll. Step 7: File payroll taxes with the federal and Indiana state government. Follow the IRS instructions for federal taxes, including unemployment. Indiana Income Taxes: Tax withholdings must be filed electronically according to schedule. If you have filed Indiana withholdings in the past, you need to continue to do so, even if you don’t owe anything. The state re-evaluates your withholdings annually and tells you what schedule to follow. New businesses follow the schedule set based on anticipated withholdings. State Unemployment Taxes (SUTA): You need to pay SUTA electronically through the Uplink Employer Self Service website. You can enter information manually or by CSV file. You need a CSV or ICESA file if you have over 50 employees. Step 8. Document and store your payroll records. Indiana requires you to keep records on employees for at least three years. Information should include contact details and other data, as required by the Federal Labor Standards Act. Learn more in our article on retaining payroll records. Step 9. Do year-end payroll tax reports. Send the federal Forms W-2 (for employees) and 1099 (for contractors). You also need to submit the Indiana WH3 annual withholding form. If you filed more than 25 withholding statements in a calendar year, this must be done electronically. Download our free checklist to help you stay on track while you’re working through these steps: Indiana Payroll Laws, Taxes & Regulations No matter what state you are in, you must follow federal law for income taxes, Social Security, Medicare, and federal unemployment insurance (FUTA). You’ll need to withhold 6.2% of each employee’s check for Social Security and 1.45% for Medicare taxes; you’ll also need to pay a matching amount from your bank account. FUTA is 6% on up to $7,000 of earnings. Learn more in our guides on FICA taxes and FUTA, as well as rules for overall payroll compliance. Indiana Taxes Indiana taxes are 3.23%, with county taxes ranging from 0.5% to 2.864%. There are reciprocity agreements for five states you need to be aware of. SUTA runs from 0.5% and 7.4%. State Income Taxes Indiana has a flat tax rate of 3.23%. However, each county also charges taxes at rates varying from 0.5% to 2.864%. Withholdings are based on the employee’s Indiana county of residence as of Jan. 1 of the tax year. If they live out of the state, then use the county of their place of business. Check the Indiana Department of Revenue site for the deduction tables and county codes and rates. There are two tables: one for personal deductions and one for dependent exemptions. You can find the exemptions on the form WH-4. Reciprocity Agreements Indiana has reciprocity agreements with Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin. All salaries, wages, tips, and commissions earned in these states by an Indiana resident must be reported as if they were earned in Indiana. Similarly, residents of these states that earn income in Indiana need to report and pay tax on that income to their state of residence. Out-of-state employees need to fill out a Form IT-40RNR if they earn wages, salaries, tips, or commissions. Unemployment Insurance You need to pay unemployment insurance if you paid a dollar or more in remuneration to a covered worker, have acquired part or all of a business that pays SUTA, are a liable entity in another state, and have workers in Indiana. Some entities are exempt, however, such as churches, some agricultural businesses (it depends on how much you pay in wages and how many people you employ), and nonprofits. Indiana’s state unemployment insurance tax is on the first $9,500 of an employee’s income and runs between 0.5% and 7.4%, with the new employer rate at 2.5%. Your rates are based on your experience balance as of June 30 and your past 36 months’ payroll. There is also a penalty rate of 2% if you fail to pay your premiums within 10 days of the date requested by the Merit Rate Delinquency Notice. Workers’ Compensation Insurance If you have one or more employees, you need to pay for workers’ compensation insurance—luckily, Indiana is one of the cheapest states in which to purchase workers’ comp. Several insurance companies offer policies. You do not need to include corporate officers in the coverage unless you wish to. Other exempt employees include casual workers, agricultural employees, household employees, and independent contractors. You can apply to self-insure, but you must submit proof that you can afford to provide recompense to injured employees. You or your parent corporation must also have been in business for at least five continuous years. Self-insuring requires a surety bond of not less than $500,000, and you’ll pay the state annual fees to maintain your certificate. Minimum Wage Laws in Indiana Indiana’s minimum wage remains at $7.25 an hour. Tipped employees must be paid at least $2.13 and receive at least minimum wage when tips are added. If they do not, you must make up the difference. Employees under 20 may receive a training wage of $4.25 per hour for the first 90 days on a job. In addition, students working part time for up to 20 hours per week when working certain jobs, like work-study programs, are exempt from minimum wage. Under certain circumstances, like common construction, you may have to pay prevailing wages if they are more than the minimum wage. Overtime Regulations Overtime includes any hours worked above 40 in a workweek and is 1.5 times the employee’s regular wage. You must pay this for any hourly or other nonexempt employees who qualify; failing to comply will subject you to penalties and fines. Exemptions include: Executives, administrators, and other professionals earning at least $455 per week Outsides salespeople Some computer-related workers (usually those who set their own hours) Some transportation, agricultural, and farmworkers Live-in housekeepers Salaried artists Certified teachers Different Ways to Pay Employees In Indiana, employers must pay wages in cash, check, draft or money order, or via direct deposit. You cannot force an employee to accept direct deposit, however. Pay cards are not addressed, but employees must receive their full wages (i.e., the pay card cannot take a percentage), or you must pay that percentage above the wages earned. Pay Stub Laws Indiana requires pay stubs to include hours worked, wages paid, and a listing of deductions made. It’s pretty basic and easily done with payroll software. Minimum Pay Frequency You need to pay wages at least semimonthly or biweekly and no later than 10 business days following the close of the pay period. Employees can request to be paid biweekly, and you must oblige. Paycheck Deduction Rules Indiana cannot deduct more than 25% of the employee’s disposable earnings for the week or the amount by which the disposable earnings for the week exceed 30 times the federal minimum hourly wage. Indiana allows deductions as required by law or court order and as requested by the employee for the following: Insurance premiums Charity contributions Purchase of bonds, securities, or stock of the employing company Labor union dues Merchandise sold by the employer to the employee Amount of loan made to the employee by the employer Healthcare Uniform or equipment purchases, not to exceed the lesser of $2,500 per year ($48.08 weekly) or 5% of the employee's weekly disposable earnings Reimbursement for education or employee skills training, unless the education or employee skills training was provided through an economic development incentive from a federal, state, or local program An advance for payroll or vacation pay Merchandise, goods, or food offered by the employer, for the employee's benefit, use, or consumption, at the written request of the employee Final Paycheck Laws If an employee leaves your employment, permanently or temporarily, then you need to pay the final paycheck by the next usual payday. The final paycheck must include any accrued PTO or vacation pay. You are not required by law to provide severance pay. If you decide to offer this, be sure it’s in the employee contract. Accrued Paid Time Off Indiana does not designate any paid time off or vacation rules. Therefore, it’s up to you to designate policies at the time of hiring—any agreements you make are legally binding. Accrued vacation is considered deferred wages. Indiana HR Laws That Affect Payroll Indiana’s laws generally default to federal law or contracts. The laws concerning the hiring of minors changed in July 2021, however, and deserve attention. Indiana New Hire Reporting You need to report new hires or rehires who return to work after 60 days of being laid off, fired, furloughed, separated, or given leave without pay. Do this within 20 days of hire or rehire on the new hire website. The instructions there will guide you through filling out the report. You need to submit at least the employee’s name, address, Social Security number, and date of hire, as well as your company name, address, and FEIN. Lunch and Other Break Time Requirements Indiana does not require you to provide meal breaks to employees of any age (the mandatory breaks for minors have been repealed). Default to federal law, which says that you don’t have to provide breaks; however, if you do, you need to pay for short breaks, but not bona fide meal breaks where the employee is not doing any work. Meal breaks are usually 30 minutes or longer, though they can be shorter depending on certain circumstances. Paid Sick Leave Indiana does not require you to pay for sick leave. However, if you do agree to paid sick leave, then you cannot deny anyone benefits or lesser benefits based on age, disability, race, color, sex, national origin, or religion. Indiana Family Leave Act Indiana follows the federal Family Medical Leave Act. The federal FMLA applies to employers who had at least 50 employees in 20 weeks of the current or previous year. It allows employees up to 12 weeks of unpaid leave in a 12-month period for bonding with a new child, dealing with serious health conditions, or dealing with emergencies from a family member on military duty. Learn more about FMLA in our article about federal labor laws. Hiring Minors Naturally, Indiana enforces federal law restricting minors from working in hazardous industries. It has also recently updated its list of prohibited occupations for minors. Here are a few examples, but check the Youth Employment website for details, including specific definitions. There is a long list of prohibited occupations for 14- and 15-year-olds. The permitted lists are shorter. Here is a representative sampling: Office and clerical work Cashiering Selling Modeling Assembling orders Errand work Cleanup work/grounds maintenance Intellectual or artistic work Lifeguarding (15-years and up) Some agricultural work There are some exceptions to the hazardous work rule. For example, 14-year-olds are prohibited from operating a tractor unless they are in 4-H and have had certain orientation courses. The prohibited occupations for 16- and 17-year-olds include the following: Working around explosives or the manufacturing of explosives Coal mining Forest fire fighting, forestry, logging Sawmill operations Working around radioactive substances Operating bakery machines Operating circular and other powered saws Roofing Excavation There are exceptions to this, such as with certain work-study programs. Work hours for 14- and 15-year-olds are restricted to between 7 a.m. and 7 p.m. during the school year and 7 a.m. to 9 p.m., June 1 through Labor Day. They can work three hours a day during school days for 18 hours a week. During non-school days, they can work eight hours. On non-school weeks, they can work 40 hours. For 16-year-olds, the hours extend to 6 a.m. to 11 p.m.—except on school nights, when it’s only until 10 p.m. They can work nine hours a day, 40 hours a week during school weeks, and 48 hours during non-school weeks. Seventeen-year-olds can work between 6 a.m. and 10 p.m. on school nights or 11 p.m. with parental permission. They can work nine hours a day, 40 hours a week on school weeks, or 48 hours on non-school weeks. Payroll Forms You’ll pay withholding taxes through INTIME, but the other payroll forms you need are available in PDF that you can download or fill out online. Indiana State W4 Form Indiana’s withholding exemption form is the WH-1. The WH-1U is for underpayments and the WH3 for end-of-year withholding. These are filed through INTIME only. Other Indiana State Payroll and Tax Forms WH-4: Exemption form that employees fill out. Nonresident military spouses should fill out the WH-4MIL to get a tax exemption. WH-47: Certificate of residence for non-Indiana residents who live in reciprocity states Find other payroll forms on the Indiana government website. Federal Payroll Forms W-4 Form: To help employers calculate taxes to withhold from employee paychecks W-2 Form: Reporting total annual wages earned (one per employee) W-3 Form: Reports total wages and taxes for all employees Form 940: Reports and calculate unemployment taxes due to the IRS Form 941: Filing quarterly income and FICA taxes withheld from paychecks Form 944: Reporting annual income and FICA taxes withheld from paychecks 1099 Forms: Providing non-employee pay information that helps the IRS collect taxes on contract work Indiana Payroll Tax Resources/Sources Departmental Notice #1: Walks you through calculating state and county income tax withholdings Information Bulletin #28: Discusses state and county income tax, reciprocal states, and withholdings W-2/WH-3 Electronic Filing Requirements: How to file these forms electronically Unemployment Insurance Employer Handbook: Everything about state unemployment insurance, from how your rates are determined to how the claims and appeals process works Self-Insurance Guide: Discusses the requirements and rules for self-insuring for workers’ compensation Indiana Labor and Safety Codes: The laws surrounding hiring, paying, and taking care of employees Bottom Line The county taxes and reciprocity agreements with neighboring states can make learning how to do payroll in Indiana a bit complex—but it’s reasonably straightforward for the rest of it. Just remember that withholdings are paid monthly, quarterly, or annually—depending on how much you withhold—and SUTA is charged quarterly. There’s also workers’ compensation insurance to consider, and you have some leniency when scheduling minors. If you ever get lost, consult our checklist and look through the documents on the Indiana government website to guide you.

South Dakota is one of the easiest states in which to run payroll as calculating South Dakota payroll taxes is a straightforward process. The state doesn’t collect income tax or require a state income deduction form—one less thing for you and your employees to worry about. There are no local taxes in South Dakota, either. As such, learning how to do payroll in South Dakota should come easily. You can make running your South Dakota payroll even easier by using an all-in-one payroll service like . From electronically onboarding new employees to calculating and filing South Dakota payroll taxes, QuickBooks Payroll helps you make sure your payroll is accurate every time, so you don’t have to pay any penalties. See it in action today with a free product demo. Step-by-Step Guide to Running Payroll in South Dakota South Dakota makes payroll easy for businesses by generally following federal guidelines. However, attempting to calculate South Dakota payroll taxes by hand could result in costly errors. Here are the basic steps you should follow to run payroll in South Dakota. Step 1: Set up your business as an employer. New companies may need to access the federal Electronic Federal Tax Payment System (EFTPS) to create a new Federal Employer Identification Number (FEIN). Your FEIN is required to pay federal taxes. Step 2: Register your business with the State of South Dakota. If your business is new, you need to register on the South Dakota Secretary of State's website. Any company that pays employees in South Dakota must also register with the South Dakota Department of Revenue. Step 3: Create your payroll process. Determining how and when you pay employees and tax agencies is crucial to creating a standard payroll process. You’ll also need to determine how you’ll collect employee payroll forms and documents you need for your records. You can opt to process payroll by hand (not recommended), set up an Excel payroll template, or sign up for a payroll service to help you handle your South Dakota payroll. Step 4: Have employees fill out relevant forms. Every company that hires employees in South Dakota must collect certain forms during the onboarding process. Each employee must complete I-9 verification within their first three days on the job. New employees must also have a completed W-4 on file. Step 5: Collect, review, and approve time sheets. You must collect and approve time sheets before submitting payroll. You can use paper time sheets, but we recommend time tracking software that can save you time and ensure the accuracy of reported hours. Step 6: Calculate employee gross pay and taxes. You’ll need to compute each employee’s total pay, deductions, tax withholdings, etc. You’ll also owe employer taxes that will need to be remitted to the federal government. Learn more about how to calculate payroll if you need help. Step 7: Pay employee wages, benefits, and taxes. Most companies today pay all employees through direct deposit, but cash and paper checks are also options. South Dakota has a minimum wage of $9.95 per hour, higher than the federal minimum wage of $7.25 per hour. You can pay your federal and South Dakota state taxes online. If you use a benefits provider, it should work with you to make deductions simple, automatic, and electronic. Step 8: Save your payroll records. Keeping your company’s business records is good practice. South Dakota does not have any laws requiring businesses to keep employee payment or company payroll records, but federal law requires you to maintain payroll records for at least three years and payroll tax documents for four years. Learn more in our article on retaining payroll records. Step 9: File payroll taxes with the federal and state government. All South Dakota state taxes need to be paid to the applicable state agency on the schedule provided, usually quarterly, which you can do online at the South Dakota Department of Revenue website. To pay federal taxes, you can make those payments online using the EFTPS on one of the following two schedules: Monthly: When the IRS assigns you a monthly schedule, you need to deposit employment taxes on payments made during a calendar month by the 15th of the following month. Semiweekly: When the IRS assigns you a semiweekly schedule, you must deposit employment taxes for payments made Wednesday, Thursday, and Friday by the following Wednesday, and for payments made Saturday, Sunday, Monday, and Tuesday, by the following Friday. Please note that reporting schedules and depositing employment taxes are different. Regardless of the payment schedule that you are on, you only report taxes quarterly on Form 941 or annually on Form 944. Step 10: Complete year-end payroll reports. Every year, you will need to complete payroll reports, including all W-2 Forms and 1099 Forms. You must provide these forms to employees no later than Jan. 31 of the following year. South Dakota Payroll Laws, Taxes & Regulations Knowing how to calculate South Dakota payroll taxes and ensure compliance with all federal and state employment laws is crucial to making sure your payroll is accurate every time. To help you maintain compliance with payroll regulations, review the specific steps of doing payroll in South Dakota below. With few exceptions, most employers in the US must pay Federal Insurance Contributions Act (FICA) taxes. The current FICA tax rate for Social Security is 6.2% and 1.45% for Medicare. Both the employer and the employee will pay these taxes, each paying 7.65% for the combined Social Security and Medicare taxes. South Dakota Taxes Like most states, South Dakota has certain taxes that companies must pay. South Dakota does not levy local taxes or a state income tax. Employer Unemployment Taxes All businesses in South Dakota must pay State Unemployment Tax Act (SUTA) taxes. The current wage base is $15,000, and rates range from 1.2% to 6.0%. All new non-construction employers in South Dakota will pay a SUTA rate of 1.2% for their first year and 1.0% for years two and three. New construction companies pay 6.0% in their first year and 3.0% for years two and three. Businesses that pay SUTA in full and on time can claim a tax credit of up to 5.4% on their Federal Unemployment Tax Act (FUTA) taxes—FUTA is 6% on the first $7,000 of an employee’s earnings. Workers’ Compensation South Dakota does not require that businesses carry workers’ compensation insurance, though it does recommend it. Workers’ compensation insurance provides benefits to employees who suffer on-the-job injuries and can help protect businesses from lawsuits. Income Taxes South Dakota does not have state income tax, so you’ll only need to withhold federal income taxes unless the employee is exempt. South Dakota Minimum Wage South Dakota has a state minimum wage of $9.95 per hour, which was raised from $9.45 per hour Jan. 1, 2022. Businesses must pay tipped employees at least $4.975 per hour, provided that their tips get them to the hourly minimum wage. If not, the company must make up the difference. Please note, the tipped minimum wage is not a typo. South Dakota law requires that the tipped employee minimum wage is at least 50% of the regular minimum wage. Anytime the minimum wage increases, so does the tipped minimum wage. Calculating Overtime South Dakota overtime rules follow the Fair Labor Standards Act requirements. Under the FLSA, all employers must pay employees 1.5 times their regular hourly wage for hours worked over 40 in a workweek. Failure to comply will result in underpayment of taxes and potential penalties and fees down the road. Paying Employees South Dakota law requires employers to pay employees at least once per month and on a regularly scheduled day. For example, if your company pays workers once per month on the 15th of the month, you need to pay every 15th of the month. South Dakota also requires employers to pay workers by one of the following methods: Cash Paper check Direct deposit This law also allows employers to pay employees by any other agreed-upon means, including a payroll card. If you need help keeping track of your payroll periods and dates, use one of our free pay period calendars. Pay Stub Laws South Dakota has no law requiring an employer to provide employees with a pay stub, but we recommend it as a best practice. If you do not use a payroll service, download one of our free pay stub templates to help you get started quickly. South Dakota Paycheck Deductions South Dakota does not prohibit an employer from deducting wages from an employee’s paycheck, nor is there any law stating what deductions are allowable. Because there is no law, it may be safe to assume that you can deduct wages from an employee’s paycheck for: Cash shortages Damages, lost, or stolen company property Required work uniforms or tools Please note that, according to the Department of Labor, a company cannot make deductions to an employee’s pay if those deductions would cause the employee to earn less than the federal minimum wage ($7.25 per hour) for that pay period. Because South Dakota has a higher minimum wage, however, you would need to ensure that the employee is not receiving less than $9.95 per hour. Terminated Employees’ Final Paychecks South Dakota law requires employers to pay recently separated employees their last paycheck on the next regular payroll run after the employee’s last day. This applies to employees who: Were fired, discharged, terminated, or laid off Quit or resigned Were suspended or resigned due to a labor dispute South Dakota HR Laws That Affect Payroll South Dakota does not have many state-specific HR laws, but you still need to ensure that you follow the federal guidelines, which South Dakota law mostly adopts. South Dakota New Hire Reporting Every employer in South Dakota must report new hires and any rehired employees to the South Dakota Department of Labor within 20 days of their start date. This report is used to enforce child support orders and must include the employee’s name, address, and Social Security number. Meals & Breaks South Dakota has no law requiring employers to provide meal periods or breaks to employees. This means the federal rule applies, which does not require meal periods or breaks. If a company provides meal or break periods, however, they must be at least 30 minutes to qualify to be unpaid. South Dakota Child Labor Laws Under South Dakota law, children aged 14 and 15 can work up to 40 hours per non-school week and 20 hours per school week. They may not work in a job that is considered dangerous to life, health, or morals. And per federal law, working hours must fall between 7 a.m. to 7 p.m. on school days and between 7 a.m. to 9 p.m. on non-school days. There are no federal restrictions on hours or days that minors 16+ can work. Time Off & Leave Requirements South Dakota doesn’t provide any laws specifically governing time off. Federal law does dictate instances when unpaid time off must be allowed. South Dakota Family Leave South Dakota follows the Family and Medical Leave Act (FMLA), which requires that all eligible employers provide up to 12 weeks of unpaid leave for employees who fall under a covered disability. This can include pregnancy and caring for an ill family member. The FMLA does not require that companies pay employees for this time out of work, but it does require that employers keep the employee’s job, or a substantially similar one, available to them when they return. South Dakota does not provide for any additional family leave under state law. Paid Time Off South Dakota has no laws requiring employers to provide employees with paid time off (PTO). Companies in South Dakota are free to create PTO policies and may include whether they pay out accrued and unused PTO when an employee leaves. South Dakota does not require that companies do, so it’s a good practice to have this clearly defined in your company policy. The important thing is to follow the guidelines in your policy, or you can be held liable. To see South Dakota’s other leave regulations, click on each leave type below: Payroll Forms South Dakota does not have any state payroll forms because the state has no income tax. Federal Payroll Forms Here is a complete list and location of all the federal payroll forms you should need. W-4 Form: Provides information on employee withholdings so you can properly calculate and withhold federal and state income taxes W-2 Form: Used to report total annual wages for each employee W-3 Form: Used to report total annual wages for all employees; summary form of W2 Form 940: To calculate and report unemployment taxes due to the IRS Form 941: Used to file quarterly income tax Form 944: Used to file annual income tax 1099 Forms: Provides information for non-employee contract work South Dakota Payroll Tax Resources South Dakota Department of Revenue provides many forms, information on the latest laws and regulations, and other employer-specific information. South Dakota Division of Business Services has many great resources for new and existing businesses to help them navigate licensing, taxes, and employer requirements. South Dakota Labor Cabinet offers support and resources to help businesses ensure compliance with unemployment and workers’ compensation plus other labor laws. Bottom Line South Dakota is one of the easiest states to run payroll. There are no local taxes and no state income tax or state tax forms. For the most part, South Dakota HR laws follow federal regulations, making your job simple and straightforward.

Learning how to do payroll in Pennsylvania is simple overall, as most of its regulations are in line with federal employment laws. However, the multiple taxes to factor in makes the process a bit complex. With state income tax, earned income tax, and local and city taxes, you’ll need to know which taxes you and your employees are responsible for paying. If you’ve found yourself needing to process payroll in Pennsylvania and want to avoid making any mistakes that could result in penalties, consider using . It is an all-in-one HR platform that can help you onboard new employees, pay with direct deposits at no additional costs, and file payroll taxes. Get 50% off Payroll Software for 3 months. Running Payroll in Pennsylvania: Step-by-Step Instructions Step 1: Set up your business as an employer. At the federal level, you need to apply for a Federal Tax ID and register for an account in the Electronic Federal Tax Payment System (EFTPS). Step 2: Register with the Pennsylvania Department of Revenue. You can register for both Income Withholding and Unemployment Insurance tax accounts online using the PA-100 Business Entity Registration Form. You should receive your account number automatically after completing the online registration. Step 3: Register for City Taxes. If you are paying an employee in either the City of Pittsburgh or the City of Philadelphia, you will be required to register for tax accounts with those cities individually. City of Pittsburgh: If you do not have a City ID and will be paying an employee in Pittsburgh, then you must register your business with the City of Pittsburgh. You will want to select Payroll Expense Tax, Local Services Tax, and Earned Income Tax with Jordan Tax Service. You should receive your number one to two days after registering. City of Philadelphia: If you do not have a City ID and will be paying an employee in Philadelphia, you must register your business with the City of Philadelphia. You can register with the City of Philadelphia Department of Revenue online. You should receive your account number automatically after completing the online registration. Step 4: Register for local taxes. If one of your worksites is located in Pennsylvania, you are required to withhold and remit the local Earned Income Tax (EIT) and Local Services Tax (LST) on behalf of employees working in Pennsylvania. Worksites include factories, offices, branches, and warehouses. You can register by completing an Employer Registration Form and remitting it to your local tax collector. Step 5: Set up payroll and collect employee forms. Whether you’re going to do payroll yourself or use payroll software, you’ll need to determine a pay cycle that is compliant with PA law and establish a process that works for your business. It’s best to collect employment forms from new hires during the onboarding process. Forms include the W-4, I-9, and direct deposit information. Pennsylvania does not have any additional forms. Step 6: Collect, review, and approve time sheets. Make sure to do this a couple of days before payday, as Pennsylvania Wage Payment and Collection Law says employees must receive their wages no later than the specified payday. There are multiple ways you can track employee time—use one of our free time sheet templates to help if you don’t yet have an established system. Step 7: Calculate payroll and pay employees. There are many ways to calculate payroll, and it’s up to you to decide which is best for your business. You can use payroll software, a calculator, or even Excel. Step 8: File payroll taxes with the federal and state government. All state and local tax payments need to be made directly to the applicable agency based on whatever schedule is assigned to your business. Federal tax payments must be made via EFTPS. Generally, you have to deposit federal income tax withheld and both employer and employee Social Security and Medicare taxes based on the schedule assigned to your business by the IRS. The IRS can assign you to one of the following depositing schedules: Monthly Depositor: Requires you to deposit employment taxes on payments made during a month by the 15th day of the following month. Semiweekly Depositor: Requires you to deposit employment taxes for payments made Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit taxes for payments made Saturday, Sunday, Monday, and/or Tuesday by the following Friday. It’s important to note that schedules for depositing and reporting taxes are not the same. Employers who deposit both monthly and semiweekly should only report their taxes quarterly or annually by filing Form 941 or Form 944. Step 9: Complete year-end payroll reports. You will need to complete W-2s for all employees and 1099s for all independent contractors. Both employees and contractors must have received these documents by Jan. 31 of the following year. Download our free checklist to help you stay on track while you’re working through these steps: Pennsylvania Payroll Law, Taxes & Regulations Pennsylvania payroll laws are in line with most of the federal regulations. There are some overtime laws and specific taxes you’ll need to stay abreast of. Overall, it is important to remember that Pennsylvania has state tax, earned income tax, and local taxes, which can make things a bit more complicated. Pennsylvania Payroll Taxes While there are no state or local taxes that you will be directly liable for as a Pennsylvania employer, you will be responsible for withholding and remitting them on behalf of your employees. Pennsylvania has both state and local taxes for its residents, so it’s important that you have a general understanding of what those are to ensure you’re in compliance. Unemployment Insurance Tax Pennsylvania has a state Unemployment Compensation (UC) fund that protects workers against job loss by providing temporary income to qualified individuals. Employer contributions, charged for the first $10,000 that each employee earns in a calendar year, are the primary funding. Every calendar year, a contribution tax rate is computed and mailed to each employer for the following year. If you disagree with the information on the rate notice, you can file an appeal within 90 days of the date of the rate notice. The first time you pay wages in Pennsylvania, you will be considered a “new employer” and assigned a contribution rate of: There are exceptions to the Pennsylvania UC Law that exclude certain employers from being liable. Those exceptions include: Sole Proprietorships/Partnerships: Owners of an individual entity or partnership are considered self-employed. Self-employed individuals are not technically employees, and their earnings are not considered wages. Family Employment: If an individual is employed by a son, daughter, or spouse, or a child under the age of 18 is employed by a parent. Additional covered family include stepchildren and their parents, foster children and their parents, and adopted children and their parents. Agricultural Employment: If there are fewer than 10 employees for over 20 calendar weeks or if there is less than $20,000 in cash wages paid. Domestic Employment: Individual homeowners, local college clubs, fraternities, or sororities paying less than $1,000 during any quarter of the calendar year. Elected vs Appointed Officials: Services of an elected official It’s important to remember that you will also be responsible for federal unemployment taxes. The standard rate is 6% on the first $7,000 of each employee’s taxable wages. The maximum tax you’ll pay per employee is $420 ($7,000 x 6%). Workers’ Compensation Insurance Workers’ compensation insurance covers medical bills, rehabilitation costs, and lost wages for employees who get injured or experience a work-related illness. Coverage is mandatory for most employers under Pennsylvania law. You can obtain workers' compensation insurance through a licensed insurance carrier or the State Workers' Insurance Fund (SWIF). Some employers are exempt from workers' compensation coverage. Exemptions include railroad workers, longshore workers, federal employees, domestic servants, and certain agricultural workers; there are also exemptions for religious beliefs and executive status in certain corporations. Pennsylvania Minimum Wage The below updates to the state minimum wage will be effective as of July 1 of each year, so you’ll need to ensure that what you’re paying employees aligns with it. If you do any of the following, you will violate the Pennsylvania Minimum Wage Act: Misclassifying employees as exempt from overtime when their job duties should qualify them from overtime pay. Deducting expenses in large enough amounts that the employee’s take-home pay falls below the minimum wage. Not making up the difference for tipped employees whose tips don’t raise their pay to the minimum wage. Violating the Pennsylvania Minimum Wage Act may subject your business to serious fines, penalties, and other legal consequences. Pennsylvania Overtime Regulations There are three major differences between federal overtime laws and Pennsylvania’s regulations. Pennsylvania does not recognize the highly compensated employee exemption, which allows employers to avoid paying overtime to employees who earn more than $107,432 annually. You’re liable for paying eligible employees overtime regardless of how much they earn. Federal overtime laws do not require overtime for certain computer employees; however, Pennsylvania does not have an exemption for these employees. Pennsylvania requires that overtime must be paid. Pennsylvania’s rule has a higher salary threshold that executive, administrative, and professional employees need to make in order to be exempt from overtime. The salary threshold is set to increase annually on Oct. 3 as follows: Starting in 2023, the salary threshold will adjust automatically every three years based on the average wages of occupations in Pennsylvania that are exempt. The Pennsylvania Department of Labor requires an employer to pay overtime to employees, unless otherwise exempt, at 1.5x the employee’s regular rate of pay for all hours worked in excess of 40 hours in a workweek. Different Ways to Pay Employees in Pennsylvania While there are many different ways to pay employees, Pennsylvania’s Wage Payment and Collection Law specifies that an employer must pay wages by either: Cash Check Direct Deposit (with employee consent) Pay Cards (while originally not permitted, an amendment was passed in 2017 allowing the use of pay cards—as long as your employees are explicitly made aware of all payment options, and it is their choice to be paid via pay card) Pennsylvania Pay Stub Laws There are no guidelines set forth by Pennsylvania law regarding pay stubs. It is not required that a certain format is followed or even that an employer provides a pay stub at all. Minimum Pay Frequency Pennsylvania employers are required to pay their employees at least semimonthly, meaning that they are paid two times per month. The first payment has to be between the first and 15th day of the month, and the second payment must be made between the 14th and the last day of the month. The waiting time between the end of a pay period and payday must not exceed 15 days. Final Paycheck Laws in Pennsylvania When a business parts ways with an employee, it’s very important that their final paycheck is paid in a timely manner. Pennsylvania law requires that final paychecks be paid on the next scheduled payday, regardless of whether the employee quit or was terminated. The final paycheck should contain the employee's regular wages from the most recent pay period, plus other types of compensation due to them (commissions, bonuses, and accrued sick/vacation pay). Employers are legally allowed to withhold money from the employee's last paycheck if the employee owes your organization. This could be the result of things like unpaid loans from the company, money for uniforms that were never paid, or even unauthorized expenses on a company card. Severance Pay in Pennsylvania As a Pennsylvania employer, you don’t have to provide your employees with severance pay if they are terminated or voluntarily leave. Pennsylvania law will only enforce that you pay severance payments to your employees if there is a signed written agreement in place between an organization and employee. Accrued Paid Time Off Payouts There is no regulation in place requiring accrued vacation payouts. Both Pennsylvania and federal law leave it up to employers to decide. Similar to Severance Pay, an employer is only required to pay accrued vacation upon separation if it is included in a previously signed employment contract or policy. Pennsylvania HR Laws That Affect Payroll Although Pennsylvania does have many HR laws in place, most of them align with federal HR laws. You’ll want to pay extra attention to required breaks and work permits for minors. Pennsylvania New Hire Reporting As a Pennsylvania employer, you will have to report all employees who reside or work in Pennsylvania to the Pennsylvania Department of Labor and Industry. All new employees need to be reported within 20 days of their hire date. The Pennsylvania CareerLink website gives employers a few ways to report, including: Manual Entry: Use a web form to enter new hires one at a time (best for 10 or fewer) File Uploads: Copy your data into a template to upload at once (best for 10 or more) Secure File-Transfer: Use a web portal to send a file to their server (best for large companies to automate reporting) Breaks, Meals & Paid Leave Pennsylvania’s break laws are all based on age. As a Pennsylvania employer, you are required to provide a 30-minute break period to employees aged 14–17 who work five or more consecutive hours. Employers are not required to provide breaks to employees 18 and over. While not required, it is, of course, at the discretion of the employer if they would like to provide breaks to their employees. It’s important to know that if you do decide to provide breaks, there are regulations about pay. If the break provided is less than 20 minutes, an employee must still be paid for that time. However, if the break is more than 20 minutes and the employee is not working during the break, it does not have to be paid. Child Labor Laws The Pennsylvania Child Labor Law (CLL) was put in place to help protect children under the age of 18 and provide a safe and healthy work environment. The CLL prohibits children from working in certain establishments and occupations and also regulates the number of hours that they can work. Minors under the age of 18 are also required to obtain a work permit before they are able to seek employment. Minors under the age of 16 must also submit a written statement from their parent or legal guardian acknowledging and granting permission for the nature of the work and the hours of employment. Work Permits for Minors Employment Certificates, also known as Work Permits, are mandatory in Pennsylvania for minors under 18. The certificate has to be obtained by the minor and given to their employer to verify their ability to work before they are able to be hired. In Pennsylvania, minors can apply for a Work Permit of Employment Certificate through the public school in their district. It is vital that if you intend to hire a minor, you follow these regulations and ensure that you obtain a copy of their work permit before hiring. Failure to do so can result in fines and penalties against your business. Payroll Forms The only state-specific payroll forms you’ll need to worry about as an employer in the state of Pennsylvania are for unemployment compensation. Otherwise, you’ll just use federal payroll forms. Pennsylvania W-4 Form Pennsylvania does not have a statewide withholding document like the federal W-4 form. Since Personal Income Tax is based on a flat tax rate of 3.07% in Pennsylvania, there is no need for separate state documentation. Pennsylvania Unemployment Tax Forms The Department of Labor and Industry requires employers to electronically file UC wage and tax information. The most frequently used include: Form UC-2 Employer’s Report for Unemployment Compensation: This form is used to report an employer's quarterly gross and taxable wages and UC contributions due. Form UC-2A Employer's Quarterly Report Of Wages Paid To Each Employee: This form is used to list employees' Social Security numbers, names, gross wages earned, and credit weeks for a particular quarter. Form UC-2B Employer's Report of Employment and Business Changes: This form is used to report any recent change in name, mailing address, or business location. It is also used to report that an employer no longer has employees or that a business has been sold or discontinued. Form UC-2X Pennsylvania UC Correction Report: This form is used to make changes to the gross and/or taxable wages previously reported. Federal Payroll Forms Form W-4: To help employers calculate taxes to withhold from employee paychecks Form W-2: To report total annual wages earned (one per employee) Form W-3: To report total wages and taxes for all employees to the IRS (summary of W-2s) Form 940: To report and calculate unemployment taxes due to the IRS Form 941: To file quarterly income and FICA taxes withheld from paychecks Form 944: To report annual income and FICA taxes withheld from paychecks Form 1099-MISC: To provide non-employee pay information that helps the IRS collect taxes on contract work Resources & Sources Pennsylvania Department of Revenue: Find links to COVID-19 resources, e-file your state taxes, and learn about how property tax and rent rebate programs can help you with your cash flow. Pennsylvania CareerLink: Find hiring resources for your business, learn about disability service partnerships, and report new hires. Pennsylvania Office of Unemployment Compensation: Register for a UC Tax Account Number and Appeal a UC Contribution Rate directly from Pennsylvania’s Office of Unemployment Compensation website. It also provides employers with state-specific information about audits, appeals, common paymasters, and more. There is an employer quick guide with contact information for each department that employers can use to call for guidance on everything from registrations to tax filings to labor law posters. Also, check with your payroll software or service for resources and state-specific features. Bottom Line While processing Pennsylvania payroll is pretty simple overall, it’s important to remember all the taxes that come into play. Though many of its labor laws align with federal guidelines, there are quite a few that are unique to Pennsylvania. With state income tax, earned income tax, and local/city taxes, you will want to make sure that you are diligent with your payroll to avoid penalties.

Unlike most states, Alaska has no state income tax, but it does charge state unemployment taxes (SUTA), as is typical. Its payroll and HR laws are straightforward, although the child labor laws should be reviewed. There’s also a law concerning paying for transportation into and out of the state for employment—something unique to Alaska’s remote location and seasonal work. Learn more about Alaska payroll and HR rules in this article. Even without state income tax withholdings to bother with, having payroll software like makes things easier and ensures you stay compliant with SUTA and other wage regulations. It pays employees by check or direct deposit and tracks payroll and tax laws for all 50 states. Sign up today and get 50% off for 3 months. Step-by-Step Guide to Running Payroll in Alaska Step 1: Set up your business as an employer. At the federal level, you need your Employer Identification Number (EIN) and an account in the Electronic Federal Tax Payment System (EFTPS). Step 2: Register with the State of Alaska. File your new business with the Alaska Department of Labor online, by mail, or at one of the field tax locations. Next, sign up for a myAlaska online account. This is where you connect to multiple departments for filing new hire reports, paying unemployment insurance (called Employment Security Taxes), and more. Step 3: Set up your payroll process. Create a set schedule of paydays that are monthly or semimonthly as agreed upon with your employees. You can process payroll by hand (not the most efficient way), set up an Excel payroll template, or sign up for a payroll service. Step 4: Collect employee payroll forms. These payroll forms are best filled out during employee onboarding. Forms include W-4, I-9, and direct deposit information. Alaska has no additional forms for employees to fill out. Step 5: Collect, review, and approve time sheets. You must collect and approve time sheets before submitting payroll. You can use paper time sheets, but we recommend time tracking software that can save you time and ensure the accuracy of reported hours. Step 6: Calculate payroll and pay employees. You can use software, a calculator, or even Excel to calculate payroll. There are multiple ways to pay employees legally, including check, direct deposit, pay card, and even cash. Step 7: File payroll taxes with the federal and Alaska state government. Follow the IRS instructions for federal taxes, including unemployment. Alaska Income Taxes: There are none, so there’s nothing for you to do. SUTA: The state mails you your contribution report by the end of quarter. Even if you don’t get a contribution report or don’t owe anything, you must file and pay (if applicable) by the due dates below. You need to file online if you have 50+ employees in a quarter, generate more than $1 million in taxable wages in the current or preceding calendar year, or have a payroll agent file for you. Otherwise, you can pay online or via mail with Form TQ01. Step 8. Document and store your payroll records. Alaska requires you to keep records on employees for at least three years. SUTA information needs to be kept for five years. Information should include name and Social Security number, beginning and ending dates for periods worked, total wages in each period, and payroll information like wages earned, hours worked, and special payments. Learn more in our article on retaining payroll records or see Page 10 of the Alaska Unemployment Insurance Tax Handbook. Step 9. Do year-end payroll tax reports. Send the federal Forms W-2 (for employees) and 1099 (for contractors) before Jan. 31 of the year following your reporting year. With no state income tax, there are no additional forms for you to file. Download our free checklist to help you stay on track while you’re working through these steps: Alaska Payroll Laws, Taxes & Regulations No matter what state you are in, you must follow federal law for income taxes, Social Security, Medicare, and federal unemployment insurance (FUTA). Learn more in our articles on FICA taxes and FUTA. Alaska Taxes Alaska does not charge income taxes, but it does have unemployment insurance taxes of 1.5% to 5.9% and requires workers’ compensation insurance for all employers. State Income Taxes There are no state income taxes here. However, make sure to file your federal income tax withholdings, which include 12.4% for Social Security (6.2% to be withheld from your employee’s paycheck and the other half from your bank account) and 2.9% for Medicare (1.45% to be withheld from your employee’s paycheck and the other half from your bank account). Unemployment Insurance Alaska charges state unemployment insurance taxes (SUTA), which it calls Employment Security Tax (ES). While most states base this on your direct benefits costs, Alaska measures changes in your payrolls to approximate benefits costs. It says this method keeps the unemployment fund solvent and is simpler and cheaper to administrate. You file online or via mail with the TQ01. SUTA is charged on the taxable wage base of that year, which is defined as 75% of the statewide average annual earnings of workers covered by the program. In 2022, that amount is $45,200. The tax rates vary by your experience factor, which depends on the class of employer you are and your payroll decline over the past 12 quarters. There are 21 levels, ranging from 1.5% to 5.9%. You can see the rates on Alaska’s Dept. of Labor website and a full explanation of how the unemployment is calculated. Alaska’s SUTA excludes some large, stable businesses like state and municipal governments and some nonprofits. Sole proprietors, partners, and LLC members are exempt from ES, but you may choose to have your excluded employees included so that they may be eligible for UI benefits. However, there are some rules to follow—see the Alaska Unemployment Insurance Tax Handbook for details. Workers’ Compensation Insurance Alaska requires you to have workers’ compensation if you have one or more employees in the state. You can find insurance companies on the Alaska DOL website. Some exceptions to this rule are Sole proprietors, partners, members of an LLC or executive officers with a minimum of 10% ownership, and executive officers of nonprofits Babysitters Housekeepers Harvest or transient help Entertainers under contract Cab drivers in some cases Professional hockey players and coaches Real estate agents in some cases High school students in work-study Volunteers You can also elect to self-insure. If you do this, you must have been in business in Alaska for at least five years, have a safety/loss control program, employ at least 100 people in Alaska and elsewhere, and have a net worth of over $10 million (these requirements may be achieved through a parent company). If you qualify and are interested, you’ll need to apply using Form 07-6129. Alaska also has special funds set up for workers who do not have an insured employer, commercial fishermen, and employees who are physically impaired permanently. Minimum Wage Laws in Alaska Alaska’s minimum wage for 2022 is $10.34 an hour. It’s been slowly increasing this rate but does not list future rates. The Alaska Wage and Hour Act lists 19 exceptions to the minimum wage laws. Some of the most common are: Executives Volunteers or employees of nonprofits Full-time students employed by the university they are attending Computer systems analysts, computer programmers, software engineers, or other similarly-skilled workers Registered guides, for the first 60 days of employment during a calendar year Part-time employees caring for children in the employer’s home Minors under 18 employed part-time (<30 hours a week) Certain employees at car dealerships Alaska Overtime Regulations Overtime laws apply to employers who have more than four employees in their regular course of business. Overtime starts for hours in excess of 40 in a workweek and is 1.5 times the employee’s regular wage—but Alaska law says you shall only employ someone over 40 hours when absolutely necessary. You cannot “pay” for overtime with comp time. There are exemptions for employees involved in canning, small mining operations, agriculture, switchboard operations, seamen, some forestry, line-haul trucking, community health, mechanics in some circumstances, and flight crew. Different Ways to Pay Employees Alaska Statute 2020, Sec. 23.10.040 says employees shall be paid in lawful US money or with “negotiable checks, drafts, or orders payable upon presentation without discount by a bank or depository inside the state.” Direct deposit and paper checks are allowed, with employee consent, but the bank or depository institution cannot charge the employee fees to access their money. You can also pay employees using cash, but follow best practices to ensure it’s legal. Pay cards aren’t specifically addressed. Pay Stub Laws Each payday, you must provide an employee with a pay stub that includes the rate of pay, hours worked, gross and net wages, beginning and ending pay dates, deductions, advances, and overtime hours. Minimum Pay Frequency Alaska law says that you must pay employees monthly or semimonthly, and the employee can decide which they prefer. It does not list specific paydays, but the usual practice is the first and/or 15th of the month. Paycheck Deduction Rules In addition to deductions for retirement contributions, health benefits, and judicially mandated garnishments, you may also deduct pay for: Days not worked Unpaid disciplinary actions or for penalties imposed by safety or major rules infractions Reimbursement for goods or services stolen and cash register shortages Damages To pay off a creditor (at the written consent of the employee) Security deposit on uniforms and equipment as long as it does not exceed the price of the item and does not reduce the wage below the minimum wage Room and board, calculated at a reasonable cost Jury duty and other deductions: You may offset any amounts paid to your employee by the court for jury duty, witness fees, or military pay against the salary for that particular week. The employee has to agree to sign it over to you, though. Final Paycheck Laws If you terminate someone’s employment, you need to pay them their final paycheck within three days. If an employee quits, the last paycheck is due at the next regular payday that is at least three days after the day the employer received notice. Alaska does not have rules concerning severance pay. These should be spelled out in the employment contract. Layoffs, Strikes & Lockout Paychecks If an employee goes on strike, is laid off, or is subject to an employer lockout during a pay period, you still need to pay them their earned wages by their regular payday. Payroll Rules for Public Construction Contracts If you have a Department of Labor contract for public construction in the state of Alaska, you need to file your employee lists and payroll data in Excel format either weekly or biweekly, depending on how often you run payroll. You’ll do this through myAlaska. Check out online payroll instructions for complete details. Alaska HR Laws That Affect Payroll Alaska’s HR laws are very basic and, in most cases, depend on employer/employee agreement. You must still follow federal laws for anything not specified by the State of Alaska. Alaska New Hire Reporting New hires must be reported online via myAlaska within 20 days of hire or rehire. You’ll need to submit the employee’s name, address, and Social Security number, as well as your employer name, address, and EIN. If you are a multistate employer, you can report your hires in Alaska or in another state with the rest of your hires and rehires. If you do hire in multiple states, you need to notify the Secretary of the Department of Health and Human Services, Multistate Employer Notification, P.O. Box 509 Randallstown, MD 21133‐0509; fax: (410) 277‐9325. Lunch & Other Break Time Requirements Alaska does not require breaks for employees 18 and over. However, if you provide breaks under 20 minutes, you need to pay for the time. If you provide a mealtime of over 20 minutes and the employee is not working, then you do not need to pay for that time. Minors get a 30-minute lunch break if they work six consecutive hours. They must take this at or before the five-hour point. Paid Time Off (PTO) Payment of sick leave, accrued vacation, or any other type of PTO is not a requirement of Alaska wage and hour laws. It’s a good business practice, however, to provide employees with PTO. Whatever you decide should be agreed upon in writing with your employee. Alaska Family Leave Act Most businesses must follow the rules of the federal Family and Medical Leave Act. It provides up to 12 weeks of unpaid leave in a 12-month period for bonding with a new child, dealing with serious health conditions, or, in some cases, dealing with emergencies from a family member in military duty. The federal FMLA applies to employers with at least 50 employees in 20 weeks of the current or previous year. Learn more about FMLA in our article about federal labor laws. The Alaska Family Leave Act does provide slightly different benefits, but that only applies to employees of the state, the University of Alaska, the Alaska Railroad, and political subdivisions of the state. Hiring Minors Alaska law requires a work permit for children 16 and under. Those older than 16 must have a permit if the establishment serves alcohol. Minors under 14 may only work as babysitters, in newspaper delivery or sales, or in the entertainment industry with a permit. Minors under 19 cannot sell tobacco, and no one under 21 is allowed to work in the cannabis/marijuana industry. Minors under 18 cannot work in jobs involving: Handling explosives Mining Logging, sawmills, or with power-driven woodworking devices Power-driven tools for hoisting, metal forming, bakery Roofing and excavation Electrical work with voltages exceeding 220 Exposure to bloodborne pathogens Outdoor solicitation or sales Minors 14 and 15 are limited to mostly office work. Find a complete list of prohibited occupations by age on the Alaska DOL website. General work hours for minors: Alaska and federal law differ when it comes to minors, so you’ll need to adhere to the strictest rules to ensure you’re in compliance. Per Alaska law, no minor under 18 can work more than six days a week. There are no restrictions on hours for minors 16-18. Federal law restricts 14- and 15-year-olds to only working hours as follows: WHEN SCHOOL IS IN SESSION: Hours will be limited to nine hours of school attendance plus employment in any one day; work will be performed only between the hours of 5 a.m. and 9 p.m. and total hours worked will be limited to 23 in any week. DURING SCHOOL VACATIONS: Work hours will be limited to 40 hours per week between the hours of 5 a.m. and 9 p.m. They also aren’t allowed to work more than three hours on school days. For more information on federal child labor laws, check out our guide to hiring minors. Transportation Costs Alaska is unique in that employers often pay to have their employees brought to and from the state such as for seasonal work. If you provide this transportation, pay an employee’s way, or loan the cost of transportation to the employee’s place of employment—into or out of Alaska—then you must provide transportation back when that employment ends. You don’t need to pay if the employee is fired for fighting, intoxication, lying on the job application, or having unexcused absences for three or more days. You also do not need to pay if the employee quits, unless it’s for health or safety reasons or because you misrepresented wages, lodging, or working conditions. Payroll Forms Most of Alaska’s payroll tax forms need to be filed online through myAlaska. However, there are several forms for filing SUTA. You can find these on the Alaska DOL website. They include TQ01A, B, and C for filing quarterly contributions and changes, TSUP for supplemental contributions, and the TOPT 1-4 for changes or other payments. Form 07-6129 is used to request the option to self-insure for workers' compensation. Federal Payroll Forms W-4 Form: To help employers calculate taxes to withhold from employee paychecks W-2 Form: Reporting total annual wages earned (one per employee) W-3 Form: Reports total wages and taxes for all employees Form 940: Reports and calculate unemployment taxes due to the IRS Form 941: Filing quarterly income & FICA taxes withheld from paychecks Form 944: Reporting annual income & FICA taxes withheld from paychecks 1099 Forms: Providing non-employee pay information that helps the IRS collect taxes on contract work Alaska Payroll Tax Resources/Sources Alaska Unemployment Insurance Tax Handbook: This covers everything, from the history of unemployment insurance in Alaska to how to file your quarterly withholdings. Department of Labor Employer Website: Get information about apprenticeship programs, state ES tax filings, workers’ compensation, and more. Alaska Wage & Hour Administration Packet: This covers workers’ compensation, the Alaska Family Leave Act, payment of wages, overtime, and more. TQ01 First Time Filers: This covers how to fill out the Alaska Quarterly Contribution Report for unemployment insurance. Bottom Line Alaska is one of the easiest states for payroll taxes. It does not have a state income tax, and the employment security taxes are easier to calculate than in other states. It has workers’ comp insurance through private companies. The labor laws are generally left to federal rules or employee contracts. Be sure to spell out time off and breaks in your hiring contract. The other major consideration is if you pay to bring an employee into Alaska for employment, you need to be ready to pay their way back after employment ends.

Processing payroll and calculating Kentucky payroll taxes is pretty straightforward. Unlike some other states, Kentucky does not have any local taxes and has only one state payroll tax form, making this one of the easiest states in which to run your company’s payroll. You can make running your Kentucky payroll even easier by using an all-in-one payroll service like . From electronically onboarding new employees to calculating and filing Kentucky payroll taxes, QuickBooks Payroll helps ensure your payroll is accurate every time. Sign up today and get 50% off for 3 months. Step-by-Step Guide to Running Payroll in Kentucky Kentucky makes payroll easy for businesses by generally following federal guidelines. However, attempting to calculate Kentucky payroll taxes or Kentucky withholding tax by hand could result in costly mistakes. Here are the basic steps you should follow to run payroll in Kentucky. Step 1: Set up your business as an employer. New companies may need to create a new Federal Employer Identification Number (FEIN) by accessing the federal Electronic Federal Tax Payment System (EFTPS). Your FEIN is required to pay federal taxes. Step 2: Register your business with the State of Kentucky. For new businesses, you need to register on the Kentucky Secretary of State's website. Any company paying employees in Kentucky also needs to register with the Kentucky Department of Revenue. Step 3: Create your payroll process. This includes deciding how often you’ll be paying employees and when, along with what method you plan to use to issue their paychecks (paper checks vs direct deposit), how to conduct onboarding, and how to update employee information. You can opt to process payroll by hand (not recommended), set up an Excel payroll template, or sign up for a payroll service to help you handle your Kentucky payroll. Step 4: Have employees fill out relevant forms. Each company that hires employees in Kentucky must collect certain forms during the onboarding process. Employees must complete I-9 verification no later than their third day on the job. New employees must also have a completed W-4 on file, and specifically, the state version of the W-4—Kentucky's Withholding Certificate or Form K-4. Step 5: Review and approve time sheets. You will want to start processing your company’s payroll several days before your payroll is due. During this time, you need to collect and review documented work time from hourly and nonexempt employees so you can check for any mistakes. There are many ways to track employee time—some of which are free. Step 6: Calculate employee gross pay and taxes. Kentucky has a flat income tax of 5% statewide. The flat tax helps employees anticipate their payroll and can make your calculations a bit simpler—although calculating payroll by hand is generally not recommended. Learn more about how to calculate payroll if you need assistance. Step 7: Pay employee wages, benefits, and taxes. Most companies today pay employees through direct deposit. Cash (not the best way) and paper check are also options. Kentucky’s state minimum wage mirrors the federal minimum wage, so make sure that you are paying your employees at least $7.25 per hour. You can pay your federal and Kentucky state taxes online. If you use a benefits provider, it should work with you to make deductions simple, automatic, and electronic. Step 8: Save your payroll records. Keeping your company's business records is good practice. Kentucky law also requires that employers keep the following records for at least one year: Employee’s name and employee number Social Security number Home address Date of birth Sex Job title Hours worked during each workday, workweek, and pay period Regular rate of pay and total earnings Total overtime pay All bonus payments and deductions from each pay period Total wages paid during each pay period and each pay date Step 9: File payroll taxes with the federal and state government. All Kentucky state taxes need to be paid to the applicable state agency on the schedule provided, usually quarterly, which you can do online at the Kentucky Department of Revenue website. To pay federal taxes, you can make those payments online using the EFTPS on one of the following two schedules: Monthly: When the IRS assigns you a monthly schedule, you need to deposit employment taxes on payments made during a calendar month by the 15th of the following month. Semiweekly: When the IRS assigns you a semiweekly schedule, you must follow these schedules: For payments made Wednesday, Thursday, and Friday, deposit employment taxes by the following Wednesday For payments made Saturday, Sunday, Monday, and Tuesday, deposit employment taxes by the following Friday Note that reporting schedules and depositing employment taxes are different. Regardless of the payment schedule you are on, you only report taxes quarterly on Form 941 or annually on Form 944. Step 10: Complete year-end payroll reports. Every year, you must complete payroll reports, including all W-2 Forms and 1099 Forms. Be sure to provide these forms to employees and contractors no later than Jan. 31 of the following year. Download our free checklist to help you stay on track while you’re working through these steps: Kentucky Payroll Laws, Taxes & Regulations You need to begin, of course, by following federal law for income taxes, Social Security, Medicare, and Federal Unemployment Tax Act (FUTA) taxes. Most employers in the US must pay Federal Insurance Contributions Act (FICA) taxes. The current FICA tax rate for Social Security is 6.2% and 1.45% for Medicare. Both the employer and the employee will pay these taxes, each paying 7.65% for the combined taxes. Understanding how to calculate Kentucky payroll taxes and apply the related laws is vital to ensuring accurate payroll. To help you maintain compliance with payroll regulations, review the specific laws, taxes, and regulations involved in doing payroll in Kentucky below. Kentucky Taxes Like most states, Kentucky has certain taxes that companies must pay. Kentucky does not levy local taxes, however, so you only need to be concerned with state taxes. Employer Unemployment Taxes All businesses in Kentucky must pay State Unemployment Tax Act (SUTA) taxes. The current wage base is $10,800, and rates range from 0.3% to 9.0%. All new employers in Kentucky will pay a SUTA rate of 2.7% for their first year. Businesses that pay SUTA in full and on time can claim a tax credit of up to 5.4% on their FUTA taxes. Workers’ Compensation Kentucky businesses with one or more employees must carry workers’ compensation insurance. Workers’ compensation insurance provides benefits to employees who suffer on-the-job injuries. The state usually starts to pay these benefits a week or two after an employee is out of work because of their injuries and only covers their lost income and medical bills. There are, however, exceptions to this requirement. If your company employs workers who fall into one of the following categories, you may not need to carry workers’ compensation insurance: Domestic workers Agricultural workers Employees of charitable and religious organizations Income Taxes Unlike some states, Kentucky has reciprocity laws with Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, and Wisconsin. These laws allow employees to be taxed in their state of residence and not in the state where they earn wages. This eliminates employees paying double taxes. Let’s say you have a business in Covington, Kentucky, and you have an employee who lives across the river in Cincinnati, Ohio. Your Ohio employee earns wages in Kentucky, but because these two states have a reciprocity agreement in place, you only need to withhold Ohio taxes from their paycheck. Depending on how much the employee makes, they may pay between 0% and 3.688% in income tax in Ohio while working in Kentucky. Kentucky Minimum Wage Kentucky has a straightforward minimum wage that mirrors the federal minimum wage. At $7.25 per hour, the minimum wage was last raised in Kentucky in 2008. Businesses must pay tipped employees at least $2.13 per hour, provided that their tips get them to the hourly minimum wage. If not, the company must make up the difference. Calculating Overtime Kentucky overtime rules follow the Fair Labor Standards Act (FLSA) requirements. Under the FLSA, all employers must pay employees 1.5 times their regular hourly wage for hours worked over 40 in a workweek. Paying Employees Kentucky law requires that employers pay employees at least twice per month. Companies must also pay employees within 18 days of the end of the pay period in which the wages were earned. The state of Kentucky specifies how employees must be paid. These include: Cash Paper check Direct deposit Payroll card Pay Stub Laws Kentucky law requires companies with 10 or more employees to provide each employee with a pay stub. Each pay stub must include the total payment and any deductions for that pay period. Kentucky Paycheck Deductions Kentucky law prohibits employers from deducting any of the following from an employee’s paycheck: Fines Cash shortages Damages, lost, or stolen company property The law goes further to say that an employer cannot deduct wages from an employee unless: Authorized to do so by a government agency The employee has consented in writing Please note that, according to the Department of Labor, a company cannot make deductions to an employee’s pay if those deductions would cause the employee to earn less than the federal minimum wage ($7.25 per hour) for that pay period. Terminated Employee’s Final Paycheck Whether an employee quits or is terminated from employment by some other means, Kentucky law requires that companies pay an employee’s final paycheck on the next regular payday after their final day of work or within 14 days of separation, whichever occurs last. Kentucky HR Laws That Affect Payroll Kentucky does not have many state-specific HR laws. That doesn’t mean you can ignore the following sections, however, because you will still need to ensure that you follow the federal guidelines, which Kentucky law mostly follows. Kentucky New Hire Reporting Every employer in Kentucky must report new hires and any rehired employees to the Kentucky New Hire Reporting Center. Every employer must report new hires within 20 days of the hire date. This report is used to enforce child support orders and must include the employee’s name, address, and Social Security number. Meals & Breaks In Kentucky, every employer is required to provide employees with a rest period of at least 10 minutes for every four hours of work. According to the Kentucky Labor Cabinet, this rest period is a paid break. Companies must also provide a reasonable amount of time for workers to take a meal break no sooner than the third hour of a work shift and no later than the fifth hour of a work shift. The meal break does not have to be paid so long as the employee is fully relieved of their work duties. Kentucky Child Labor Laws Kentucky law allows minors aged 14 and 15 to work up to 40 hours per week when school is not in session. When school is in session for the entire week, they can only work up to three hours per day and 18 hours per week. Minors aged 16 and 17 can work up to six hours per school day and 30 hours per school week. To work more than 40 hours weekly when school is in session, their parents have to request that the school complete a Certificate of Satisfactory Academic Standing Form and fill out the Parent/Guardian Statement of Consent Form. When school is not in session, there are no working hour restrictions. Time Off & Leave Requirements Providing employees with time off and leave to care for themselves after an injury or a sick family member has different requirements in different states. There are federal guidelines you will need to follow. Kentucky generally follows these guidelines, making your job simpler than if your business was located in other states. Kentucky Family Leave Kentucky follows the Family and Medical Leave Act (FMLA), which requires that all eligible employers provide up to 12 weeks of unpaid leave for employees who fall under a covered disability. This can include pregnancy and caring for an ill family member. The FMLA does not require that companies pay employees for this time out of work but does require that employers keep the employee’s job, or a substantially similar one, available for them when they return. Kentucky does not provide for any additional leave under state law. Paid Time Off (PTO) Kentucky has no laws requiring employers to provide employees with paid time off, including sick leave. Companies in Kentucky are free to create PTO policies and may include whether they pay out accrued and unused PTO when an employee leaves. Kentucky does not require that companies do, so it’s a good practice to have this clearly defined in your company policy. It’s important to follow the guidelines in your policy so you’re not held liable. If you offer PTO and need help calculating employees’ PTO accrual, use our free PTO calculator below: Holiday Leave Kentucky does not have any laws requiring private companies to pay employees for holidays or an increased rate for working a holiday. A company may choose to do so and must comply with the FLSA. Voting Leave Kentucky law requires employers to provide employees with at least four hours of time off to vote or get a vote by mail ballot. An employee must request this time at least one day in advance, and the employer can specify when the employee should go vote. Kentucky law doesn’t specify that employers must pay employees for time worked. As long as their job is protected for at least four hours and the employee actually casts a vote, they should be able to return to work as normal. Jury Duty Leave An employer in Kentucky is not required to pay an employee for time spent serving on a jury. However, under Kentucky law, an employer cannot terminate, penalize, threaten, or coerce an employee to ignore jury duty service. Bereavement Leave There is no requirement in Kentucky for businesses to provide employees with bereavement leave. Companies are free to create a policy if they choose and must abide by it. Payroll Forms Payroll forms can vary from state to state, and some have their own W-4, like Kentucky. Fortunately, that’s the only one. Kentucky Payroll Forms Kentucky’s Withholding Certificate (K-4): Employee withholding form; should be completed upon hire Federal Payroll Forms Here is a complete list and location of all the federal payroll forms you should need. W-4 Form: Provides information on employee withholdings so you can properly calculate and withhold federal and state income taxes W-2 Form: Used to report total annual wages for each employee W-3 Form: Used to report total annual wages for all employees; summary form of W2 Form 940: Used to calculate and report unemployment taxes due to the IRS Form 941: Used to file quarterly income tax Form 944: Used to file annual income tax 1099 Forms: Provides information for non-employee contract work Kentucky Payroll Tax Resources The Kentucky Department of Revenue provides many forms, information on the latest laws and regulations, and other employer-specific information. The Kentucky One Stop Business Portal provides excellent resources for existing and new businesses. The Kentucky Labor Cabinet offers support and resources to help businesses ensure compliance with unemployment and workers’ compensation plus other labor laws. Bottom Line One of the most straightforward states in which to run payroll, Kentucky has only one state-specific payroll form and no local taxes to calculate. Most of the payroll and HR laws governing employers in Kentucky align with federal regulations, so you don’t have to worry about complying with complex overlapping laws.

In Alabama, processing payroll and calculating the corresponding taxes is mostly straightforward, though there are some nuances to pay attention to. The state levies local taxes in some areas, which can impact payroll tax calculations. With only one state payroll form, however, Alabama generally follows federal guidelines, making it one of the easiest states in which to run your company’s payroll. You can make running your Alabama payroll even easier by using an all-in-one payroll service like . From electronically onboarding new employees to calculating and filing Alabama payroll taxes, QuickBooks Payroll helps you make sure your payroll is accurate every time. Sign up today and get 50% off for 3 months. Step-by-Step Guide to Running Payroll in Alabama Alabama makes payroll easy for businesses by generally following federal guidelines. However, attempting to calculate payroll and withholding tax by hand could result in costly errors. Here are the basic steps you should follow to run payroll in Alabama. Step 1: Set up your business as an employer. New companies may need to access the federal Electronic Federal Tax Payment System (EFTPS) to create a new Federal Employer Identification Number (FEIN). Your FEIN is required to pay federal taxes. Step 2: Register your business with the State of Alabama. If your business is new, you need to register on the Alabama Secretary of State's website. Any company that pays employees in Alabama must also register with the Alabama Department of Revenue. Step 3: Create your payroll process. This entails deciding how often you’ll be paying employees and when, as well as what method you plan to use to issue paychecks (paper checks vs direct deposit), and how to update employee information. You can opt to process payroll by hand (not recommended), set up an Excel payroll template, or sign up for a payroll service to help you handle your Alabama payroll. Step 4: Have employees fill out relevant forms. Every company that hires employees in Alabama must collect certain forms during the onboarding process. Each employee must complete I-9 verification and have on file a completed W-4—and, specifically, the state version of the W-4, called Employee's Withholding Tax Exemption Certificate (Form A4). Step 5: Collect, review, and approve employee time sheets. You must collect and approve time sheets before submitting payroll. You can use paper time sheets, but we recommend time tracking software that can save you time and ensure the accuracy of reported hours. Step 6: Calculate employee gross pay and taxes. As stated earlier, calculating Alabama payroll by hand is not recommended. The state has a progressive income tax that quickly hits the top bracket. Most employees will pay the top state tax rate on the vast majority of their income. Learn more about how to calculate payroll if you need assistance. Step 7: Pay employee wages, benefits, and taxes. Most companies today pay all employees through direct deposit, but paying via cash (not the best way) and paper check are also options. Alabama does not have a state minimum wage, so make sure that you are paying your employees at least the federal minimum wage of $7.25 per hour. You can pay your federal and Alabama state taxes online. If you use a benefits provider, it should work with you to make deductions simple, automatic, and electronic. Step 8: Save your payroll records. Alabama has no laws requiring businesses to keep employee payment or company payroll records. While that may be the case, keeping your company’s business records is good practice. If you need help with which records to keep, check out our article on retaining payroll records. Step 9: File payroll taxes with the federal and state government. All Alabama state taxes need to be paid to the applicable state agency on the schedule provided, usually quarterly, which you can do online at the Alabama Department of Revenue website. To pay federal taxes, you can make those payments online using the EFTPS on one of the following two schedules: Monthly: When the IRS assigns you a monthly schedule, you need to deposit employment taxes on payments made during a calendar month by the 15th of the following month. Semiweekly: When the IRS assigns you a semiweekly schedule, you must deposit employment taxes for payments made Wednesday, Thursday, and Friday by the following Wednesday, and payments made Saturday, Sunday, Monday, and Tuesday by the following Friday. Please note that reporting schedules and depositing employment taxes are different. Regardless of the payment schedule that you are on, you only report taxes quarterly on Form 941 or annually on Form 944. Step 10: Complete year-end payroll reports. Every year, you will need to complete payroll reports, including all W-2 Forms and 1099 Forms. You must provide these forms to employees no later than Jan. 31 of the following year. Download our free checklist to help you stay on track while you’re working through these steps: For general instructions on the basics of doing payroll, check out our guide on how to do payroll. Alabama Payroll Laws, Taxes & Regulations Understanding how to calculate payroll taxes and apply the related laws is vital to ensuring accuracy and compliance. To help you maintain compliance with payroll regulations, review the specific laws and regulations for doing payroll in Alabama below. With few exceptions, most employers in the US must pay Federal Insurance Contributions Act (FICA) taxes. The current FICA tax rate for Social Security is 6.2% and 1.45% for Medicare. Both the employer and the employee will pay these taxes, each paying 7.65% for the combined Social Security and Medicare taxes. Alabama Taxes Like most states, Alabama has certain taxes that companies must pay. Employer Unemployment Taxes All businesses in Alabama must pay State Unemployment Tax Act (SUTA) taxes. The current wage base is $8,000, and rates range from 0.65% to 6.8%. All new employers in the state will pay a SUTA rate of 2.7% for their first year. Businesses that pay SUTA in full and on time can claim a tax credit of up to 5.4% on their Federal Unemployment Tax Act (FUTA) taxes. Workers’ Compensation Alabama businesses with five or more employees must carry workers’ compensation insurance. Workers’ compensation insurance provides benefits to employees who suffer on-the-job injuries. The state usually starts to pay these benefits a week or two after a worker is out of work because of their injuries and only covers their lost income and medical bills. There are, however, exceptions to this requirement. If your company employs workers who fall into one of the following categories, you may not need to carry workers’ compensation insurance: Domestic workers Agricultural workers Casual employees Income Taxes The state does not have reciprocal agreements with any other state for income tax purposes. This means that employees may end up paying double taxes if they live in another state and work in Alabama. Some localities in Alabama do levy local taxes. This can make your payroll calculations more complex if you are doing them by hand. As such, pay close attention to where employees live and work to ensure proper computations. Alabama Minimum Wage Alabama adheres to the federal minimum wage. At $7.25 per hour, the minimum wage was last raised in Alabama in 2008. Businesses must pay tipped employees at least $2.13 per hour, provided that their tips get them to the hourly minimum wage. If not, the company must make up the difference. Calculating Overtime Alabama overtime rules follow the Fair Labor Standards Act (FLSA) requirements. Under the FLSA, all employers must pay employees 1.5 times their regular hourly wage for hours worked over 40 in a workweek. Paying Employees Alabama has no law requiring employers to pay employees on a certain schedule or at a certain frequency. It is best practice, however, to set a regular pay schedule—every other week, for example—and stick to it. The state does not specify how employees must be paid. The most common forms of payment include: Cash Paper check Direct deposit Payroll card If you need help keeping track of your payroll periods, use one of our free pay period calendars. Pay Stub Laws Alabama has no law requiring an employer to provide employees with a pay stub; however, we recommend doing so. If you do not use a payroll service, download one of our free pay stub templates to help you get started. Alabama Paycheck Deductions Alabama does not prohibit an employer from deducting wages from an employee, nor is there any law stating what deductions are allowable. Because there is no law, it is safe to deduct wages from an employee’s paycheck for: Cash shortages Damages, lost, or stolen company property Required work uniforms or tools Please note that, according to the Department of Labor, a company cannot make deductions to an employee’s pay if those deductions would cause the employee to earn less than the federal minimum wage ($7.25 per hour) for that pay period. Terminated Employees’ Final Paychecks Alabama does not have any law stating when or how an employee must receive a final paycheck. So your best option is to pay any employee who has resigned or been laid off or terminated on the next regular payroll run. If you need to pay an employee immediately and aren’t currently using a service, then use one of our recommended ways to print a free payroll check. Alabama HR Laws That Affect Payroll Alabama does not have many state-specific HR laws—but you will still need to ensure that you are following the federal guidelines, which the state mostly follows. Alabama New Hire Reporting Every employer in Alabama must report new hires and any rehired employees to the Alabama Department of Labor New-Hire program. This report is used to enforce child support orders and must include the employee’s name, address, and Social Security number. Meals & Breaks The state has no law requiring employers to provide meal periods or breaks to employees 16 years of age or older. This means the federal rule applies, which does not require meal periods or breaks. Alabama law does require employers to provide meal periods and breaks to minor workers. Employees aged 14 and 15 must receive a 30-minute break if they are scheduled to work at least five consecutive hours. These breaks can be unpaid. Alabama Child Labor Laws Under Alabama law, children aged 14 and 15 can work up to 40 hours per non-school week. They are restricted to no more than 18 hours of work in a school week and no more than three hours of work on a school day. They're also not allowed to work before 7 a.m. or after 7 p.m. during the school week. Meanwhile, minors aged 16 and 17 are not restricted to a certain number of hours, but they can't work after 10 p.m. or before 6 a.m. during the school week and are restricted by industry. Alabama does not allow 16- and 17-year-olds to work in any of the following industries or professions: Mine or quarry Wrecking, demolition, and shipbreaking Roofing, scaffolding, and sandblasting Logging Sawmill Railroad Firefighter Distillery Manufacturing of explosives Time Off & Leave Requirements For the most part, Alabama does not have state-specific time off or leave laws, but there are federal guidelines you may need to follow. Payroll Forms Payroll forms can vary from state to state, and some have their own W-4, like Alabama. Fortunately, that’s the only one. Alabama Payroll Forms Employee's Withholding Tax Exemption Certificate: Employee withholding form; should be completed upon hire Federal Payroll Forms Here is a complete list and location of all the federal payroll forms you should need. W-4 Form: Provides information on employee withholdings so you can properly calculate and withhold federal and state income taxes W-2 Form: Used to report total annual wages for each employee W-3 Form: Used to report total annual wages for all employees; summary form of W2 Form 940: To calculate and report unemployment taxes due to the IRS Form 941: Used to file quarterly income tax Form 944: Used to file annual income tax 1099 Forms: Provides information for non-employee contract work Alabama Payroll Tax Resources Alabama Department of Revenue provides many forms, information on the latest laws and regulations, and other employer-specific information. Alabama Department of Labor offers support and resources to help businesses ensure compliance with unemployment and workers’ compensation plus other labor laws. Bottom Line One of the most straightforward states in which to run payroll is Alabama. While there are some local taxes you need to deal with, there is only one state-specific payroll form.

Paying employees in Georgia is more straightforward than in more complex states like California. The primary difference is that Georgia requires employers to pay state income taxes. Understanding how to do payroll in Georgia requires understanding these nuances and other unique Georgia payroll laws. If you need help processing payroll in Georgia, consider using payroll software like . It pays and files federal, state, and local taxes, so you don’t have to. You can also pay employees via check or direct deposit at no extra cost. Sign up today and get 50% off for 3 months. Step-by-Step Guide To Running Payroll in Georgia Although doing Georgia payroll is fairly simple, there are special laws you need to pay attention to, especially on your first few payroll runs. Step 1: Set up your company’s Federal Employer Identification Number (FEIN) with the Internal Revenue Service (IRS). If your company is brand-new, you may need to apply for a FEIN. This is a simple process completed entirely online via the Electronic Federal Tax Payment System (EFTPS). If your company already has one, keep the FEIN nearby as it is required to pay federal taxes. Step 2: Register your business in Georgia. Any company that pays employees in Georgia must register with the Georgia Secretary of State. The Georgia Department of Revenue provides a comprehensive guide to help you tick all the boxes of proper registration, including how to calculate and withhold payroll taxes. Step 3: Set up your first payroll. This isn’t where you actually start running payroll but rather begin your process of setting it up. You may need to create a process for yourself, so you are certain not to miss any important steps. You can opt to do payroll yourself manually or set up an Excel payroll template. Your best bet, however, to avoid problems is to work with payroll software to help you handle your Georgia payroll. Step 4: Collect employee payroll forms. Most efficiently done during onboarding, your employees need to complete various payroll and employment forms. All employees must complete I-9 verification no later than their third day on the job. You need to keep I-9s even after the employee no longer works for the company. Every employee must also have a completed W-4 on file. Unlike some states, Georgia requires a state-specific W-4, called the State of Georgia Employee’s Withholding Allowance Certificate. Employees must also provide you with direct deposit information. Step 5: Review and approve time sheets. Companies record time in a variety of ways. Whether electronically or using paper time sheets, you need to collect, review, and approve them. Georgia employers must pay employees regularly and at least twice monthly. So, you need to make sure you begin this process several days before the scheduled payday to make sure you have enough time. Having employees sign their time sheets is a good idea. Step 6: Calculate your payroll, including taxes, and pay employees. Calculating every employee’s pay, the taxes owed by them and the company, and the deductions and withholdings required will be a huge challenge if you do it by hand, especially if you have more than a few employees. You can simplify the process and reduce mistakes if you use a standard process and payroll software to calculate pay automatically. Step 7: Pay federal and state payroll taxes. At each regular payroll run, you must pay federal and state taxes. The IRS provides instructions on paying federal taxes, while the Georgia Department of Revenue provides instructions on paying state taxes. Step 8: Save your payroll records. This step is often overlooked but is also one of the most important. It is vital that you keep detailed payroll records showing that you have regularly and correctly paid every employee, as well as state and federal taxes. Federal law requires you to maintain these records for three to four years, and Georgia’s law aligns for all private employers. Step 9: Process annual payroll reports. Every employer, regardless of which state your business is in, will need to complete W-2s for all employees and 1099s for independent contractors. By law, you must provide all employees and contractors with their annual tax form no later than Jan. 31 of the following year. Download our free checklist to help you stay on track while you’re working through these steps: Georgia Payroll Laws, Taxes & Regulations Doing payroll in Georgia is very similar to doing payroll in other states. Most regulations follow federal laws, so you are less likely to get confused by conflicting rules. No municipalities or cities in Georgia charge additional taxes, simplifying the process even more. Georgia Payroll Taxes Beyond federal taxes, Georgia levies state taxes on businesses and employees. Businesses must calculate and withhold the correct amount of tax from both employers and employees. Employer Unemployment Taxes Georgia does not have state disability insurance, but it does have State Unemployment Tax Act (SUTA) taxes. The current rate for employers ranges from 0.04% to 7.56% on a wage base of $9,500. With few exceptions, every employer in Georgia must pay SUTA. Workers’ Compensation Any Georgia employer with three or more full-time, part-time, or seasonal employees must carry workers’ compensation insurance coverage. Depending on the industry in which your business operates, your premiums will vary. Income Taxes Georgia has a progressive income tax system, meaning that the more an employee makes, the more they are taxed. The state’s income tax has six brackets ranging from 1% to 5.75%. Make sure that you are withholding the correct amount for each of your employees, especially as their salaries change over time. Georgia Minimum Wage Georgia’s minimum wage is currently $7.25 per hour, aligned with the federal minimum wage. Tipped minimum wage is $2.13 per hour. The tips the employees receive make up the difference, but if an employee’s tips do not get them to the $7.25 per hour minimum wage, the employer must make up the difference. Calculating Overtime Georgia’s overtime rate is time and a half. So, if an employee makes minimum wage, any overtime hours they work will be paid at $10.88 per hour. In Georgia, overtime pay is only required when an employee works over 40 hours in a single workweek. Paying Employees Georgia requires that employers pay employees at least twice per month. Companies are free to run payroll more frequently. Regardless of the pay schedule your company uses, you must have regular and consistent pay days. Employers in the farming, sawmill, and turpentine industries are not subject to this requirement and may pay employees just once per month. Employers have several options for paying employees: Cash Check Direct deposit Payroll cards Pay Stub Laws Georgia does not require businesses to provide pay stubs to employees. Your business may choose to do so, and if you use payroll software, it may create one automatically. If you’d like a template to make creating your own pay statements easier, then download one of our free pay stub templates. They’re already formatted—you can print and use them today. Georgia Paycheck Deductions Georgia does not specify what deductions can be taken out of an employee’s pay, aside from taxes. Because of this ambiguity, employers may be able to deduct the following, provided that it does not take the employee’s hourly pay below the minimum wage: Cash register shortage Damage or loss of employer property Uniform fee Tool or equipment fee Other items necessary for employment Terminated Employee’s Final Paychecks Georgia has no specific law or regulation detailing when or how an employer pays wages to a recently resigned, laid off, or terminated employee. To be safe, we recommend that you follow normal payroll practices and simply pay them their final paycheck during the next regular run; this aligns with federal regulations as well. Georgia HR Laws That Affect Payroll Many of Georgia’s HR and employment laws align with federal regulations. However, there are some additional employment laws and regulations you need to be aware of to make sure your company remains compliant. Georgia New Hire Reporting Employers are required by law to report all new hires to the Georgia New Hire Reporting Center. You must do this within 10 days of the employee’s start date. You must report new hires, rehires, and temporary employees. No business is exempt from this law. Breaks Georgia does not require employers to provide breaks, paid or unpaid, to employees. Businesses in the state are still required to follow federal law and may choose to provide paid breaks beyond that. So, at a minimum, companies in Georgia must pay employees for small breaks, around five to 20 minutes. Georgia Child Labor Laws Georgia does not restrict workers aged 16 and over. Employees under 16, however, are restricted from working more than: Four hours on a school day Eight hours on a non-school day Forty hours during a non-school week In addition, workers under 16 cannot start work before 6 a.m. or finish work after 9 p.m. No workers under 16 can work during school hours. Time Off & Leave Requirements Georgia doesn’t regulate paid time off (neither does the federal government). However, you will need to pay attention during voting season, as you are required to allow employees time off to cast their ballots. Payroll Forms Payroll forms can vary from state to state. Fortunately, the only state-specific form your employees need to worry about is the Georgia W-4. Three forms are applicable to Georgia employers (you’ll likely qualify for two of them): G-7: Required for businesses submitting quarterly tax returns and may be filed electronically DOL-4A: Only required if you’re a household employer, meaning you’re paying nannies, caregivers, and other staff who work at your home); you’ll use it to report quarterly tax and wage reports DOL-4N: This form is used to submit quarterly employee wages, tax information, and account changes. Federal Payroll Forms Here is a complete list and location of all the federal payroll forms you should need: W-4 Form: Provides information on employee withholdings so you can properly calculate and withhold federal and state income taxes W-2 Form: Used to report total annual wages for each employee W-3 Form: Used to report total annual wages for all employees Form 940: Used to calculate and report unemployment taxes due to the IRS Form 941: Used to file quarterly income tax Form 944: Used to file annual income tax 1099 Forms: Provides information for non-employee contract work Georgia Payroll Tax Resources The Georgia Department of Revenue provides many forms, information on the latest laws and regulations, and other employer-specific information. Tax withholdings may be confusing, and reviewing Georgia’s Employer’s Tax Guide may help you. For extensive information on how to get workers’ compensation coverage, Georgia’s Department of Labor offers guidance. Bottom Line Learning how to do payroll in Georgia can seem complicated at first glance. However, the state follows federal regulations fairly closely, and you only need to concern yourself with less than a handful of state-specific forms. Once you make sure your business has the proper registrations, completing regular payroll runs becomes routine. By keeping up with ever-changing employment laws and regulations, you can make sure you get your Georgia payroll right every time.